Nissan, one of the world’s leading automobile manufacturers, has announced a significant global restructuring plan involving major job cuts and factory closures in response to a continued decline in car sales.
As part of this restructuring, the company has decided to cut nearly 11,000 additional jobs worldwide and shut down 7 production facilities.
This move follows a previous round of layoffs in November last year, when Nissan announced the elimination of 9,000 jobs globally. With the latest decision, the total number of job cuts now stands at nearly 20,000, accounting for 15% of Nissan’s global workforce. The company currently employs around 133,500 people across the globe.
In an effort to remain competitive amid rising pressure from Chinese automakers, Nissan had earlier considered a merger with its main domestic rival, Honda. However, the proposed multi-billion dollar deal fell through due to disagreements between the two companies.
According to international media reports, had the merger materialized, it would have created a $60 billion automotive giant, ranking as the fourth-largest automaker in the world by vehicle sales—following Toyota, Volkswagen, and Hyundai.
In the wake of the failed merger talks, Nissan moved to make leadership changes. Makoto Uchida, the then CEO, was replaced by Ivan Espinosa, the company’s Chief Design Officer and head of its motorsport division.
Adding to its challenges, Nissan has also been adversely affected by tariffs imposed by U.S. President Donald Trump, which further strained the company’s performance. As a result, Nissan has reported an annual loss of $4.5 billion.
