The Japanese carmaker Nissan will lay off 11,000 more workers worldwide as part of a major restructuring plan, bringing the total job cuts to 20,000 within a year. The company aims to respond to falling sales in key markets like the United States and China.
Major Job Cuts Follow Sharp Sales Drop in US and China
Nissan, one of Japan’s biggest automakers, announced that it will reduce its global workforce by another 11,000 jobs. The cuts come as part of a broader plan to streamline its business. The company has been struggling with declining sales, especially in the US and China—two of its most important markets.
These new layoffs bring the total number of job losses at Nissan to about 20,000 in just 12 months. That figure represents around 15% of the company’s total workforce. Nissan currently employs around 133,500 people globally.
Production Plants to Shrink from 17 to 10 by 2027
While Nissan did not reveal which specific locations will see job losses, it did confirm major changes in its global operations. The company plans to reduce its number of manufacturing plants from 17 to just 10 by the year 2027.
This move suggests deep restructuring across continents. One of Nissan’s biggest factories, located in Sunderland, UK, employs nearly 6,000 people. It remains unclear whether this site will be affected by the downsizing.
Earlier Cuts and Failed Merger Expose Long-Term Struggles
This is not Nissan’s first round of layoffs. In November, the company had already cut 9,000 jobs and reduced vehicle production by 20%. The goal was to lower operational costs and improve profit margins.
Earlier in the year, Nissan was in talks to merge with a larger auto manufacturer in what would have been a multi-billion-dollar deal. The merger would have created the world’s fourth-largest car company, behind Toyota, Volkswagen, and Hyundai. But after months of talks, the deal fell apart.
New CEO, New Strategy
Following the failed merger, Nissan’s leadership changed. Former CEO Makoto Uchida stepped down and was replaced by Ivan Espinosa. Espinosa had previously overseen both the company’s global planning and motorsports divisions.
The new leadership is seen as a fresh start for Nissan. The company hopes that this change at the top will help guide it through a period of transformation and recovery.
Nissan’s Path Forward
These job cuts and plant closures mark a turning point for Nissan. The carmaker is under pressure to adapt to a fast-changing auto industry, which is moving rapidly toward electric vehicles, digital services, and stricter environmental standards.
Industry experts say that the company’s survival depends on its ability to reinvent itself. Cutting costs is only one part of the solution. Nissan must also innovate to stay competitive in the electric car market and build stronger customer trust.
“Nissan is taking necessary steps to reset its global business and build a stronger foundation for the future,” said a company spokesperson.
What This Means for Workers and the Auto Industry
Nissan’s decision affects not only its employees but also communities that rely on auto manufacturing. The ripple effect could touch suppliers, partners, and local economies. Analysts believe more job cuts in the global auto industry could follow, especially as companies shift towards automation and cleaner technologies.
Despite the challenges, Nissan is determined to move forward. The company’s leadership has expressed confidence that the restructuring will put it on a path to long-term success.