Job Cuts Targeting Office Workers Aged 45 and Older
Closure of Two Plants Under Review
Japan Production Capacity May Plunge from 1.2 Million to 800,000 Units
The Yomiuri Shimbun reported on the 18th that Nissan Motor Company is recruiting early retirees in Japan for the first time in 18 years since 2007.
According to the report, Nissan informed its employees that it will accept applications for early retirement in July and August. The company did not disclose the number of positions to be recruited.
The early retirement program targets employees aged 45 and older but younger than 65, who work in departments other than 'development, production, and design.' The positions are expected to be mainly in sales and administrative roles. Nissan explained that the background for implementing early retirement is the need to reduce costs, as the business environment is expected to become even more challenging due to factors such as U.S. tariffs.
Previously, Nissan recorded a deficit of 670.8 billion yen (approximately 6.45 trillion won) in the 2024 fiscal year (April 2024 to March 2025). To improve performance, the company announced plans to reduce the number of its global factories from 17 to 10 and cut 20,000 jobs, which is 15% of its total workforce, by March 2028. The workforce restructuring by job category includes 13,000 production workers, 3,600 administrative staff, and 3,400 researchers.
It is known that two factories in Japan and five overseas factories are being considered for closure or suspension of production. In Japan, the Oppama plant in Yokosuka, Kanagawa Prefecture, and the Shonan plant of the subsidiary Nissan Shatai in Hiratsuka, Kanagawa Prefecture, are the targets. Overseas, options being discussed include closing plants in India, South Africa, and Argentina.
Nihon Keizai Shimbun (Nikkei) explained that if Nissan closes a factory in Japan, it would be the first time in 24 years since the closure of the Musashimurayama plant in Tokyo in 2001.
The Oppama plant, which began operations in 1961, is a key Nissan factory producing models such as the Note, and employs about 3,900 people. The Shonan plant manufactures commercial vans and is reported to have about 1,200 employees. If both plants are closed, Nissan's production capacity in Japan is expected to drop from 1.2 million units to around 800,000 units.
Nikkei pointed out that "the review of plant reductions is still in the early stages" and noted that "especially in Japan, strong opposition from local governments and others is expected, so the plan could be subject to change."
The report continued, "In Kanagawa Prefecture, which is Nissan's founding region, bases for functions other than production are also concentrated. If a complete vehicle plant disappears in Kanagawa Prefecture, where Nissan has maintained relationships with local governments, employment?including related industries?will be significantly affected."
Nikkei also noted that all the overseas plants mentioned for closure by Nissan are located in the 'Global South' (mainly emerging and developing countries in the Southern Hemisphere). The newspaper analyzed that Nissan appears to be shifting its strategy from driving growth through emerging markets to focusing on the Japanese, U.S., European, and Chinese markets.
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