Nissan slashes 15% of its global work force as the Japan automaker sinks into losses

TOKYO (AP) — Nissan is slashing about 15% of its world work drive, or about 20,000 workers, because the Japanese automaker reported a loss Tuesday for the fiscal yr that simply ended amid slipping car gross sales in China and different nations, and towering restructuring prices.

Nissan Motor Corp. mentioned it is going to cut back the variety of its auto crops to 10 from 17, beneath what it known as its restoration plan to hold out “decisive and bold actions to enhance performance and create a leaner, more resilient business that adapts quickly to market changes.” It didn’t say which crops had been being closed however confirmed the closures will embody factories in Japan.

“We have a mountain to climb,” its Chief Govt Ivan Espinosa instructed reporters, stressing the duty won’t be simple, requiring self-discipline and group work. “Starting today, we build the future for Nissan.”

The job cuts to be achieved by March 2028 embody the 9,000 head rely discount introduced final yr. Nissan additionally beforehand introduced the scrapping of plans to construct a battery plant in Japan.

Espinosa, who took the helm earlier this yr, mentioned the most recent plans adopted a cautious assessment of operations, to align manufacturing with demand, together with developing with market and product methods. Nissan can even leverage its partnerships such because the one with Renault SA of France in Europe and Dongfeng Nissan in China, he mentioned.

The Yokohama-based automaker mentioned U.S. President Donald Trump’s tariffs on auto imports additionally damage its outcomes.

Nissan racked up a lack of 670.9 billion yen ($4.5 billion) for the fiscal yr by means of March, down from a 426.6 billion yen revenue recorded the earlier fiscal yr.

For the most recent quarter by means of March, Nissan recorded pink ink totaling 676 billion yen ($4.6 billion). It additionally mentioned its restoration plan contains attempting to scale back prices by 500 billion yen ($3.4 billion) in comparison with present prices.

“As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery,” Espinosa mentioned.

“All employees are committed to working together as a team to implement this plan, with the goal of returning to profitability by fiscal year 2026,” he mentioned.

However Nissan Chief Monetary Officer Jeremie Papin acknowledged the automaker faces severe challenges. Nissan didn’t give a revenue projection for the fiscal yr by means of March 2026, citing uncertainties.

___

Yuri Kageyama is on Threads:

Yuri Kageyama, The Related Press