Japanese automaker Nissan, which has been struggling with poor performance, plans to more than double the scale of its restructuring, cutting as many as 20,000 jobs.
According to NHK and other Japanese public broadcasters on May 12, Nissan intends to reduce its workforce by 20,000 employees, which is 11,000 more than the previously announced 9,000. This represents about 15% of its total workforce. The restructuring is expected to take place at both domestic and overseas business sites.
Last month, Nissan informed shareholders that it expects to record a net loss of up to 750 billion yen (approximately 5 trillion won) in restructuring costs for the fiscal year ending in March 2025. This is due to declining profitability, which has resulted from intensifying competition in both the U.S. and Chinese markets. On May 9, Nissan canceled its plan to build an electric vehicle battery plant in Kitakyushu, Fukuoka Prefecture, Japan.
In the 2017 fiscal year (April 2017 to March 2018), Nissan sold 5.77 million vehicles. However, in the 2024 fiscal year (April 2024 to March 2025), sales dropped to 3.3 million vehicles.
Nissan is expected to announce its restructuring plan along with its 2024 fiscal year-end results on May 13.
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