TOKYO, May 13 (News On Japan) - Nissan Motor has decided to cut nearly 20,000 jobs globally as it struggles with worsening business performance.
According to sources familiar with the matter, the automaker has finalized plans to lay off more than 10,000 additional employees both in Japan and overseas, on top of previously announced cuts.
In November 2024, Nissan had already announced a reduction of about 9,000 jobs. With the newly planned cuts, the total number of positions eliminated will approach 20,000.
Nissan Motor is facing a deepening business crisis, prompting the automaker to take drastic restructuring measures including a planned reduction of nearly 20,000 jobs worldwide. This significant move comes in response to a sharp deterioration in the company’s financial performance, with declining vehicle sales, sluggish profitability, and intense global competition eroding Nissan’s earnings base. The decision to cut more than 10,000 additional jobs—on top of approximately 9,000 announced in November 2024—signals the company’s urgent need to streamline operations and restore long-term viability. The layoffs are expected to affect both domestic and overseas employees, with specific regions and business units still under review.
Once a pillar of Japan’s automotive sector and a symbol of the Renault-Nissan alliance, Nissan has struggled in recent years to regain its footing amid a shifting global auto landscape. The company’s performance has been weighed down by slowing demand in key markets, including China and Europe, as well as the rising costs of electrification and next-generation vehicle development. In addition, the aftermath of past leadership turmoil and governance challenges has continued to cast a shadow over the brand’s stability and investor confidence. Recent quarterly earnings showed further signs of strain, with operating profit margins narrowing and inventory levels rising in several markets.
To counter these pressures, Nissan is reportedly considering a broader overhaul of its global production network, including possible factory consolidations and adjustments to its model lineup. Executives have also hinted at a renewed focus on core markets such as Japan and North America, while scaling back unprofitable operations in peripheral regions. Cost-cutting initiatives will likely extend beyond labor reductions, with supply chain optimization and R&D reprioritization also on the agenda. Analysts note that the success of these reforms will depend on Nissan’s ability to balance short-term financial discipline with long-term investment in innovation and brand value.
The scale of the planned workforce reduction underscores the severity of the challenge ahead. While job cuts may ease pressure on operating costs, they also carry reputational and morale risks that could affect productivity and future recruitment. Labor unions and local governments in affected areas are expected to seek assurances regarding retraining programs, redeployment support, and the avoidance of abrupt plant closures. Meanwhile, investors will be watching closely for signs that the restructuring plan is yielding tangible improvements in earnings and competitiveness. As the global automotive industry undergoes rapid transformation, Nissan’s ability to adapt will be critical not just for its survival, but for its place in the evolving mobility ecosystem.
Source: FNN
