Nissan Motor Co. unveiled a sweeping restructuring plan to cut 20,000 jobs and reduce its manufacturing footprint from 17 to 10 plants by 2027, as the Japanese automaker struggles with plunging profits and mounting losses.
The “Re:Nissan” recovery plan aims to save ¥500 billion ($3.3 billion) in fixed and variable costs compared to fiscal 2024. The company reported a net loss of ¥671 billion for the year ended March 31, a stark reversal from the ¥427 billion profit a year earlier.
Operating profit plummeted to ¥69.8 billion from ¥569 billion, while operating margin shrank to just 0.6% from 4.5%. The automaker also recorded a ¥467 billion impairment loss in its consolidated financial statements.
Under the restructuring plan, Nissan will temporarily divert 3,000 employees from future product development to cost-cutting initiatives. The company plans to reduce parts complexity by 70% and decrease the number of platforms from 13 to 7 by 2035.
The recovery efforts come as Nissan faces “challenging fiscal year 2024 performance and rising variable costs,” according to CEO Ivan Espinosa. The company declined to provide financial forecasts for fiscal 2025, citing uncertainty surrounding potential tariff impacts.
Nissan will continue its partnerships with Renault, Mitsubishi Motors, and Honda while focusing on key markets including the U.S., Japan, and China.
