Nissan Motor Corp. announced it will lay off approximately 20,000 employees—about 15% of its global workforce—as part of a sweeping restructuring plan to combat steep financial losses and declining sales, particularly in China and other key markets.
As part of the recovery strategy, the Japanese automaker will reduce its number of production plants from 17 to 10. The company described the move as a step toward building a “leaner, more resilient business” capable of quickly adapting to market shifts.
The Yokohama-based company reported a net loss of 670.9 billion yen ($4.5 billion) for the fiscal year ending March 2024, a sharp decline from the 426.6 billion yen profit it posted the previous year. Restructuring costs and trade tensions, including tariffs imposed by former U.S. President Donald Trump, further impacted earnings.
Nissan aims to cut costs by 250 billion yen ($1.7 billion) in the coming fiscal year. Despite the challenges, Chief Financial Officer Jeremie Papin expressed confidence in the company’s financial reserves, stating that Nissan has sufficient cash to carry out the turnaround.
