Nissan Layoffs to Cut 20,000 Jobs After Facing $4.5B Loss

TL;DR:

• Nissan will cut 20,000 jobs by 2027 due to a $4.5B loss.
• The company is closing plants, halting some vehicle development, and raising capital to recover.

Photo by: Nissan Global

Nissan is undertaking a significant restructuring, announcing plans to eliminate approximately 20,000 positions—about 15% of its global workforce—by 2027. This decision follows a reported net loss of $4.5 billion for the fiscal year ending March 2025, marking the company's most substantial financial setback in over two decades.

The newly appointed CEO, Ivan Espinosa, introduced the "Re:Nissan" initiative, aiming to reduce costs by $3.4 billion. Measures include the closure of seven out of 17 manufacturing facilities, with the historic Oppama plant in Japan among those under review.

Nissan is also suspending development on several vehicle models and halting merit-based salary increases globally.

To bolster its financial position, Nissan plans to raise over £5 billion through various means, including a £1 billion loan backed by the UK government, asset sales, and potential divestment of stakes in Renault and battery manufacturer AESC Group. The company is also considering selling and leasing back its Yokohama headquarters, valued at approximately $700 million.

These strategic moves come in response to declining sales in key markets like the U.S. and China, an outdated vehicle lineup, and increased competition in the electric vehicle sector.

Espinosa emphasized the urgency of the situation, stating, "We have a mountain to climb," and underscored the need for decisive action to restore profitability.