Nissan to Shut Seven Plants, Cut 11,000 Jobs Following Decline in Profit

Japanese automaker Nissan said Tuesday it will shut seven plants and cut 11,000 more jobs in a second round of job cuts and further shut seven of its factories after recording millions of dollars in profit losses last year.

The proposed shake-up brings Nissan’s global workforce cut to around 20,000 after the job cuts in November last year, the shutting of the seven factories would also reduce the automobile maker’s number of factories from 17 to 10.

Announcing the decision, Nissan Motor Co. CEO Ivan Espinosa said, “The decision (to reduce the workforce), of course, was not easy.

“In the face of challenging full-year 2024 performance and rising variable costs compounded by an uncertain environment, Nissan must prioritize self-improvement with greater urgency and speed, aiming for profitability that relies less on volume.”. He concluded.

Officials said the proposed measures would impact Nissan staff and contractor roles across its manufacturing, sales, admin, research, and development divisions as it grappled with poor sales in China and the United States and a decreased consolidated operating profit of $2.78 billion to $300 million.