Nissan plans to cut around 20,000 jobs worldwide, which represents nearly 15 percent of its workforce, as part of a radical restructuring aimed at improving its financial situation.
The announcement comes as the Japanese automaker anticipates a record net loss estimated between 700 and 750 billion yen (approximately $4.8 to $5.1 billion US) for the fiscal year ending in March 2025. The significant losses are being attributed mainly to substantial asset write-downs.
Led by new CEO Ivan Espinosa, the restructuring also includes abandoning a major electric vehicle battery plant project in Kitakyushu, Japan. That project represented a $1.1 billion USD investment and was expected to create around 500 jobs.
Nissan is currently facing significant difficulties in several of its key markets. In the U.S., an aging lineup and a notable absence of hybrid vehicles have slowed sales. In China, the company faces increased competition that has led to a significant decrease in sales there as well.
In order to revive growth, Nissan plans to deploy up to 10 new models in those regions over the next few years.
The automaker is also considering closing one of its plants in Japan to optimize its production capacity, a decision likely to elicit strong opposition from Japanese unions.
The full financial results for Nissan’s 2024 fiscal year will be announced tomorrow, Tuesday, May 13th, providing a detailed overview of the challenges the company faces and the measures considered to ensure its recovery.