Nissan Motor Co. has unveiled plans to cut an additional 10,000 jobs worldwide, announced on May 8, 2025, as part of a drastic restructuring effort to address declining sales and mounting financial pressures. The Japanese automaker, grappling with a competitive global market and operational challenges, aims to streamline its workforce and restore profitability amid a rapidly evolving automotive industry.
The latest layoffs build on Nissan’s earlier reduction of 9,000 jobs announced in November 2024, bringing the total to 19,000, or roughly 14% of its global workforce of 133,000. The cuts will affect manufacturing plants, administrative offices, and research facilities across regions, with significant impacts expected in Japan, the United States, and Southeast Asia. Nissan’s U.S. operations, particularly in Tennessee and Mississippi, face up to 3,000 reductions, while plants in Thailand and Indonesia are also targeted due to underperforming sales in ASEAN markets. The company has pledged to offer severance packages and retraining programs to mitigate the impact on affected employees.
The decision stems from a confluence of challenges. Nissan reported a 15% drop in global sales for Q1 2025, driven by weak demand in China, where it faces fierce competition from electric vehicle (EV) makers like BYD and Tesla. High production costs, exacerbated by supply chain disruptions and rising raw material prices, have further strained margins. The company’s operating profit fell 70% year-on-year to $150 million, prompting CEO Makoto Uchida to accelerate cost-cutting measures. Nissan also plans to reduce global production capacity by 20%, closing underutilized factories and shifting focus to high-demand EV and hybrid models.
The restructuring aligns with Nissan’s long-term strategy, “The Arc,” which emphasizes electrification and digitalization. The company aims to launch 30 new models by 2027, with 16 electrified, but analysts warn that the aggressive layoffs could disrupt innovation and morale. Nissan’s alliance with Renault and Mitsubishi, already strained, faces additional scrutiny as the partners navigate their own financial woes. In Japan, where Nissan employs 55,000 workers, the cuts have sparked concerns about economic ripple effects, particularly in manufacturing hubs like Yokohama.
The automotive industry’s shift to EVs and autonomous vehicles has intensified pressure on legacy automakers like Nissan, which lagged in EV adoption. The company’s stock has declined 25% since January 2025, reflecting investor skepticism about its turnaround plan. Uchida has vowed to prioritize efficiency and market responsiveness, but the scale of the layoffs has drawn criticism from labor unions, who argue that workers are bearing the brunt of strategic missteps. As Nissan navigates this turbulent period, its ability to balance cost-cutting with innovation will determine its competitiveness in a rapidly changing global market.