Nissan’s Massive Layoffs: 20,000 Jobs Cut as Automaker Struggles to Recover

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Nissan is facing one of its most significant workforce reductions in decades, announcing plans to lay off 20,000 employees—more than double its initial estimate. The decision comes as the company grapples with declining sales, rising costs, and the fallout from a failed merger with Honda.

A Drastic Turnaround Plan

The layoffs are part of Nissan’s newly unveiled Re:Nissan recovery strategy, which aims to save $3.4 billion by 2027. The company plans to cut 15 percent of its global workforce, affecting roles in manufacturing, research and development, marketing, and administration.

In addition to job cuts, Nissan will shut down seven of its 17 vehicle production plants worldwide, further reducing costs and streamlining operations.

Financial Struggles and Leadership Changes

Nissan reported a 4.5 billion net loss for the fiscal year 2024, marking its worst financial performance in over 25 years. The company’s operating profit also plummeted by 88 percent compared to the previous year.

CEO Ivan Espinosa, who took over leadership in April, described the financial results as a “wake-up call” and emphasized the urgent need for restructuring.

The Fallout from a Failed Merger

Nissan’s struggles were compounded by its unsuccessful merger talks with Honda. The negotiations collapsed earlier this year after Honda proposed turning Nissan into a subsidiary—a move Nissan ultimately rejected.

What’s Next for Nissan?

Despite the layoffs and plant closures, Nissan remains committed to regaining profitability by fiscal year 2026. The company is expected to focus on new vehicle launches, cost-cutting measures, and strategic investments to stabilize its operations.

As the auto industry continues to evolve, Nissan’s restructuring efforts will be closely watched by analysts and competitors alike. Whether the company can successfully navigate these challenges remains to be seen.