Nissan Motor Company is set to announce up to 20,000 redundancies from its global workforce, more than double the 10,000 job cuts the company announced at the end of last year, according to local reports citing a person familiar with the matter.
The struggling Japanese automaker needs to take stronger steps to turn its business around, according to the source, reflecting fast-rising competition from Chinese automakers and tougher trading conditions following the recent US import tariff hikes.
Last month, the company said it expected to incur a net loss of between JPY 700 billion and JPY 750 billion in the 2024 financial year (FY2024), which ended on 31 March 2025, substantially higher than the JPY 80 billion net loss it forecast in February. The company is scheduled to announce its actual financial results for FY2024 this week.
The 20,000 redundancies are equivalent to 15% of the company’s global workforce. The company is expected to announce the closure of one of its domestic vehicle assembly plants, as it looks to rebalance production capacity with global demand. Any such announcement is expected to trigger strong opposition from labour unions and other stakeholders.
Last week the company revealed it has shelved plans to build an electric vehicle (EV) battery plant in Japan’s Fukuoka Prefecture, just months after signing an agreement with the local government.
Under its new CEO Ivan Espinosa, who took office at the beginning of April, Nissan is closely reviewing its existing investment plans following the collapse of merger talks with Honda Motor in January. Last week, the company revealed plans to strengthen its collaboration with Alliance partner Mitsubishi Motors, with a number of joint projects underway in the US and Asia.
