Nissan Layoffs Expand Globally as Carmaker Faces Record $5 Billion Loss
| 2025-05-12
Representative image
Nissan to cut 20,000 jobs worldwide amid declining sales and forecasts of a record $5 billion annual loss, signalling deeper restructuring efforts.
Nissan Motor Company is reportedly set to implement a significant reduction in its global workforce, with a total of 20,000 jobs to be cut—approximately 15 percent of its staff—according to Japanese public broadcaster NHK. The development comes ahead of Nissan’s full-year financial results, due to be announced on Tuesday, which are expected to confirm the carmaker’s worst-ever loss.
The decision marks a sharp escalation from Nissan’s previous announcement in November that it would cut 9,000 jobs. At that time, the company was already under pressure due to weakening demand in key markets such as the United States and China. Nissan, which employed over 133,000 people as of March last year, has yet to publicly confirm the latest reported figures.
The company is bracing for a net loss of between 700 billion and 750 billion yen (equivalent to $4.74 billion to $5.08 billion) for the financial year ending in March, largely due to impairment charges and declining vehicle sales. The anticipated loss is the largest in Nissan’s history and reflects the depth of the challenges currently facing the firm.
Manufacturing Cuts and Cancelled Projects
In addition to job cuts, Nissan has outlined plans to significantly reduce its global production capacity. The company has said it will close a manufacturing facility in Thailand by June and has indicated that two more factories, not yet publicly identified, will also be shut down.
Last Friday, Nissan announced that it would cancel a planned ¥150 billion ($1.1 billion) electric vehicle (EV) battery plant on the southwestern Japanese island of Kyushu. The facility, which was expected to benefit from government subsidies, was seen as a key component of Nissan’s electrification strategy.
These decisions reflect a broader effort by the company to streamline operations and cut costs amid declining profitability and increased competition, particularly in the EV sector.
Leadership Changes and Strategic Shift
The restructuring comes as Nissan undergoes a leadership transition. Ivan Espinosa, who succeeded Makoto Uchida as Chief Executive Officer last month, is overseeing efforts to refocus the company’s global strategy. Espinosa has previously stated that “additional measures” may be necessary to stabilise the company’s performance.
Nissan has been facing difficulties competing with newer, often domestically-supported, EV manufacturers in China—now the world’s largest auto market. The company has said it plans to introduce 10 new models in China in an attempt to reverse declining sales there.
In the United States, once one of Nissan’s most profitable markets, the company has struggled to maintain its market share amid shifting consumer preferences towards hybrid models and increasing import tariffs. Nissan had initially been an early mover in the EV market with models such as the Leaf, but it has since fallen behind newer entrants and competitors.
Ratings Downgrades and Financial Pressure
Credit rating agencies have responded to Nissan’s prolonged downturn by downgrading the company’s debt. Moody’s Investors Service cited “weak profitability” and an “ageing model portfolio” in its most recent assessment, pushing Nissan into junk bond status.
The company’s weak performance forced it to revise its profit outlook four times during the just-concluded financial year. Its high debt levels and lack of competitive new models have made recovery more difficult, even as global demand for cleaner vehicles continues to rise.
Context: Industry and Economic Pressures
The broader automotive sector has experienced significant disruption due to global economic conditions, supply chain shortages, and shifting demand towards electric and hybrid vehicles. In Nissan’s case, internal challenges have compounded these external factors.
The fallout from the 2018 arrest of former Chairman Carlos Ghosn has had long-lasting effects on Nissan’s leadership stability and strategic direction. A failed merger discussion with rival Japanese automaker Honda earlier this year further underscored the company’s vulnerability and uncertain future.
Nissan is also contending with the aftershocks of increased trade tariffs, particularly those affecting Japanese car exports to the United States. The imposition of a 25 percent tariff under former U.S. President Donald Trump, and continued elevated rates, have placed additional strain on profitability in a key market.
As it prepares to unveil its financial results, Nissan is under growing pressure to demonstrate a viable path to recovery. Analysts say the company’s ability to regain its competitive edge will hinge on leadership stability, product innovation, and execution of its restructuring plan.
Conclusion
Nissan’s expanded layoff plans and anticipated record losses underline the severity of the crisis facing one of Japan’s most recognisable automakers. While management pledges renewed efforts to restore profitability, the coming months are likely to test the company’s resilience in an increasingly competitive and volatile global market.
The decision marks a sharp escalation from Nissan’s previous announcement in November that it would cut 9,000 jobs. At that time, the company was already under pressure due to weakening demand in key markets such as the United States and China. Nissan, which employed over 133,000 people as of March last year, has yet to publicly confirm the latest reported figures.
The company is bracing for a net loss of between 700 billion and 750 billion yen (equivalent to $4.74 billion to $5.08 billion) for the financial year ending in March, largely due to impairment charges and declining vehicle sales. The anticipated loss is the largest in Nissan’s history and reflects the depth of the challenges currently facing the firm.
Manufacturing Cuts and Cancelled Projects
In addition to job cuts, Nissan has outlined plans to significantly reduce its global production capacity. The company has said it will close a manufacturing facility in Thailand by June and has indicated that two more factories, not yet publicly identified, will also be shut down.
Last Friday, Nissan announced that it would cancel a planned ¥150 billion ($1.1 billion) electric vehicle (EV) battery plant on the southwestern Japanese island of Kyushu. The facility, which was expected to benefit from government subsidies, was seen as a key component of Nissan’s electrification strategy.
These decisions reflect a broader effort by the company to streamline operations and cut costs amid declining profitability and increased competition, particularly in the EV sector.
Leadership Changes and Strategic Shift
The restructuring comes as Nissan undergoes a leadership transition. Ivan Espinosa, who succeeded Makoto Uchida as Chief Executive Officer last month, is overseeing efforts to refocus the company’s global strategy. Espinosa has previously stated that “additional measures” may be necessary to stabilise the company’s performance.
Nissan has been facing difficulties competing with newer, often domestically-supported, EV manufacturers in China—now the world’s largest auto market. The company has said it plans to introduce 10 new models in China in an attempt to reverse declining sales there.
In the United States, once one of Nissan’s most profitable markets, the company has struggled to maintain its market share amid shifting consumer preferences towards hybrid models and increasing import tariffs. Nissan had initially been an early mover in the EV market with models such as the Leaf, but it has since fallen behind newer entrants and competitors.
Ratings Downgrades and Financial Pressure
Credit rating agencies have responded to Nissan’s prolonged downturn by downgrading the company’s debt. Moody’s Investors Service cited “weak profitability” and an “ageing model portfolio” in its most recent assessment, pushing Nissan into junk bond status.
The company’s weak performance forced it to revise its profit outlook four times during the just-concluded financial year. Its high debt levels and lack of competitive new models have made recovery more difficult, even as global demand for cleaner vehicles continues to rise.
Context: Industry and Economic Pressures
The broader automotive sector has experienced significant disruption due to global economic conditions, supply chain shortages, and shifting demand towards electric and hybrid vehicles. In Nissan’s case, internal challenges have compounded these external factors.
The fallout from the 2018 arrest of former Chairman Carlos Ghosn has had long-lasting effects on Nissan’s leadership stability and strategic direction. A failed merger discussion with rival Japanese automaker Honda earlier this year further underscored the company’s vulnerability and uncertain future.
Nissan is also contending with the aftershocks of increased trade tariffs, particularly those affecting Japanese car exports to the United States. The imposition of a 25 percent tariff under former U.S. President Donald Trump, and continued elevated rates, have placed additional strain on profitability in a key market.
As it prepares to unveil its financial results, Nissan is under growing pressure to demonstrate a viable path to recovery. Analysts say the company’s ability to regain its competitive edge will hinge on leadership stability, product innovation, and execution of its restructuring plan.
Conclusion
Nissan’s expanded layoff plans and anticipated record losses underline the severity of the crisis facing one of Japan’s most recognisable automakers. While management pledges renewed efforts to restore profitability, the coming months are likely to test the company’s resilience in an increasingly competitive and volatile global market.
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