Nissan Slashes 20,000 Jobs, Shuts 7 Plants Amid $4.5 Billion Loss

Japanese automaker Nissan has announced plans to slash 15% of its global workforce—equivalent to 20,000 employees—and shut down seven plants, reducing the total number of operational facilities to ten.

These drastic measures come as the company reported a loss of 670.9 billion yen ($4.5 billion) for the financial year ending March 2025, in stark contrast to the profit of 426.6 billion yen it posted the previous year.

Justifying the decisions, the Yokohama-based company said the sweeping cuts are part of a broader recovery plan aimed at taking “decisive and bold actions to enhance performance and create a leaner, more resilient business that adapts to market changes.”

Nissan cited several factors for its poor performance, including tariffs on auto imports imposed by U.S. President Donald Trump, declining vehicle sales in China and other key markets, and restructuring expenses, all of which weighed heavily on its bottom line.

According to reports, Nissan is aiming to cut costs by 250 billion yen ($1.7 billion) in the upcoming fiscal year, compared to the one that just ended.

Speaking to reporters, Nissan Chief Financial Officer Jérémie Papin acknowledged that the automaker faces serious challenges in achieving a turnaround. However, he emphasized that the company has sufficient resources to weather the storm.