Layoff News: Nissan to Cut Over 10,000 More Jobs, Total Layoffs Reach 20,000 Globally

Nissan Motor is planning to cut more than 20,000 jobs globally, or around 15% of its total workforce, as it struggles with falling sales and financial losses.

According to Japan’s public broadcaster NHK, the new round of cuts adds over 10,000 layoffs to the 9,000 already announced by the company, as per Reuters report.

The automaker recently warned of a record net loss of 700 billion to 750 billion yen ($4.8 to $5.1 billion) for the financial year that ended in March, mainly due to impairment charges.

Nissan’s performance has been weak in key markets, especially the United States, where it lacks hybrid models and has an ageing vehicle lineup. It is also facing challenges in China, where sales have been dropping.

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To recover, Nissan is restructuring under its new CEO, Ivan Espinosa, who took over last month. “Nissan is taking immediate turnaround actions and exploring all options to recover its performance,” the company said in a statement.

In another setback, Nissan has scrapped plans to build a $1.1 billion electric vehicle battery factory in Kyushu, Japan. The plant was expected to create 500 jobs and begin operations in 2028.

“After careful consideration of the investment efficiency, we have decided to cancel the construction of a new LFP battery plant in Kitakyushu City, Fukuoka Prefecture,” Nissan said.

The company is also preparing to offer early retirement to several hundred domestic employees, marking the first such move in Japan in 18 years. The Nikkei reported that early retirement applications will be accepted this fiscal year, focusing on administrative roles.

Nissan will announce its full-year results and give updates on its recovery efforts on Tuesday. The auto giant had 133,000 employees as of March last year and aims to cut global production capacity by 20%.