Nissan to cut 11,000 more jobs, shut seven factories amid slump in sales

Japanese automaker Nissan has announced plans to cut an additional 11,000 jobs worldwide and shut down seven factories as part of a sweeping restructuring effort to counter plunging sales and mounting financial losses.

The latest round of layoffs, confirmed by CEO Ivan Espinosa, brings the total number of job cuts over the past year to roughly 20,000 — approximately 15% of the company’s global workforce. Two-thirds of the reductions will come from manufacturing roles, with the remainder affecting sales, administration, research, and contract staff.

Espinosa, who recently succeeded Makoto Uchida as chief executive following the collapse of merger talks with rivals Honda and Mitsubishi, described the move as a necessary response to what he called a “challenging” financial year.

“We are facing rising costs, intensifying competition, and an uncertain global trade environment,” Espinosa said, calling the company’s annual loss of 670 billion yen ($4.5 billion) a “wake-up call.”

It remains unclear which locations will bear the brunt of the layoffs or whether the company’s key UK facility in Sunderland — which employs around 6,000 workers — will be affected. Nissan currently employs approximately 133,500 people globally.

The company’s decision to shutter seven factories follows a broader effort to scale back production by 20%, part of a cost-saving strategy unveiled in November alongside a previous round of 9,000 layoffs.

In February, Nissan’s ambitions to form a $60 billion automotive alliance with Honda and Mitsubishi disintegrated after the companies failed to reach agreement on key terms. The proposed deal would have created the world’s fourth-largest automaker by sales, behind Toyota, Volkswagen, and Hyundai.

The failed merger has left Nissan vulnerable in key markets, particularly China and the United States, where it has struggled to maintain competitiveness. In China — now the world’s largest electric vehicle (EV) producer — local manufacturers such as BYD have eroded Nissan’s market share through aggressive pricing and technological innovation.

In the US, Nissan has been hit hard by inflation, rising interest rates, and the effects of former President Donald Trump’s tariffs, which continue to cast uncertainty over its North American operations.

Last week, the company cancelled plans to build a new battery and EV production facility in Japan, further signaling a retreat from aggressive investment in next-generation technologies.

Despite these challenges, Espinosa reaffirmed Nissan’s commitment to long-term transformation. However, the firm has withheld income forecasts for the coming year, citing the unpredictable impact of global trade tensions and ongoing geopolitical volatility.

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