Nissan announces major global restructuring: 20,000 jobs cut, 7 plants to close

Yokohama, Japan — Nissan Motor Co. has unveiled a sweeping global restructuring plan that will see the elimination of 20,000 jobs and the closure of seven manufacturing plants worldwide. The move comes as the automaker grapples with mounting financial losses, declining sales, and intensifying competition in key markets.

The company confirmed that 11,000 new layoffs will be added to the 9,000 previously announced, bringing the total to roughly 15% of its global workforce. Two-thirds of the cuts will affect manufacturing roles, while the remainder will impact sales, administration, research, and contract positions.

Nissan’s global production footprint will shrink from 17 plants to 10, though the company has not yet disclosed which specific facilities will be shuttered. Industry analysts speculate that underperforming plants in the U.S. and Europe, including the Canton, Mississippi facility, could be at risk.

The restructuring follows a reported annual loss of 670 billion yen (approximately $4.5 billion), driven by falling sales in China, aggressive discounting in the U.S., and weak performance in Europe. The collapse of a proposed merger with Honda and Mitsubishi earlier this year further complicated Nissan’s recovery efforts.

“This is a wake-up call,” said newly appointed CEO Ivan Espinosa. “We must fundamentally rethink how we operate. Our fixed and variable costs are no longer sustainable in today’s market.”

As part of its turnaround strategy, Nissan plans to simplify its vehicle lineup, reduce parts complexity by 70%, and focus on core models such as the updated Leaf EV and Kicks crossover. The company also aims to improve profitability by streamlining operations and investing in next-generation electric and hybrid technologies.

Despite the scale of the cuts, analysts believe Nissan is taking necessary steps to stabilize its business and remain competitive in a rapidly evolving automotive landscape.