Nissan dismisses 15% of its global workforce amid sliding sales worldwide

Nissan is reducing around 15% of its world workforce, or around 20,000 employees, since the Japanese car manufacturer reported a loss on Tuesday for the fiscal year that had just ended up in the midst of vehicle sales in China and other nations, and the imposing restructuring costs.

Nissan said it will reduce the number of its automotive plants to 10 from 17, under what it called its recovery plan to carry out “decisive and bold actions to improve performance and create a thinner and more resistant business that quickly adapts to changes in the market.” He did not say what plants they were closing, but confirmed that the closures will include factories in Japan.

“We have a mountain to climb,” said CEO Ivan Espinosa to journalists, emphasizing the task will not be easy, requiring discipline and teamwork. “As of today, we build the future for Nissan.”

The employment cuts that will be made in March 2028 include the reduction of the 9,000 header count announced last year. Nissan also previously announced the scrapping of plans to build a battery plant in Japan.

Espinosa, who took the helm earlier this year, said that the last plans followed a careful review of operations, to align production with demand, including the arrival of market strategies and products. Nissan will also take advantage of its associations, such as the one Renault Sa de France in Europe and Dongfeng Nissan in China, he said.

Nissan said that President Trump’s tariffs on car imports also harm the company’s results. The Yokohama, the Japanese -based car manufacturer accumulated a loss of $ 4.5 billion for the fiscal year until March. He also said that his recovery plan includes trying to reduce costs by $ 3.4 billion.

“As a new administration, we are adopting a prudent approach to reassess our objectives and actively seek all possible opportunities to implement and guarantee a solid recovery,” said Espinosa

Nissan aims to return to profitability in fiscal year 2026.

But Nissan’s financial director Jeremie Papin acknowledged that the car manufacturer faces serious challenges. Nissan did not give a projection of profits for the fiscal year until March 2026, citing uncertainties.

Tariffs weighing car manufacturers

The Trump Administration in March imposed a 25% rate In the approximately 8 million vehicles gathered abroad, the United States imports annually.

General Motors earlier this month said it is Reducing your profit expectations For the year, since it prepares for a potential impact of automatic tariffs of up to $ 5 billion in 2025. The reviewed forecast occurred after Trump signed executive orders in April of relaxing some tariffs on cars and cars.

Ford Motors also indicated the upper rates of the US prices are increasing In three models produced in Mexico. And Toyota last week said Trump’s tariffs would cost the company $ 1.3 billion In just two months. The automobile manufacturer stopped in the predictions on the successes of future tariffs in business, with the CEO of Toyota, Koji Sato, saying that any future impact would be “very difficult to forecast.”

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