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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Nissan Motor Co. has unveiled a sweeping restructuring plan that includes cutting 20,000 jobs globally—double the number it had previously announced.
According to Japanese media outlets NHK and the Nikkei on May 13, Nissan plans to reduce its global workforce by approximately 20,000 employees, or about 15% of its total headcount. The company will also halt operations at seven manufacturing plants across Japan and overseas. This move marks a significant expansion from the 9,000 job cuts announced in November last year.
The decision comes amid a continued downturn in Nissan’s performance, driven by sluggish sales in the North American and Chinese markets, increased pressure from U.S. trade tariffs, and intensifying competition from Chinese electric vehicle (EV) manufacturers. The automaker has also been withdrawing local production in markets such as India and Argentina.
According to UK-based research firm GlobalData, the average operating rate of Nissan’s U.S. plants in the previous year was just 57.7%, well below the industry’s break-even threshold of around 80%.
Nissan reported an operating loss of ¥670.8 billion (approx. KRW 6.46 trillion) for fiscal year 2024, a sharp reversal from the ¥426.6 billion (approx. KRW 4.11 trillion) profit posted the previous year. Citing economic uncertainty, the company did not provide a forecast for the fiscal year ending March 2026.
As financial pressure mounts, Nissan has also canceled its planned EV battery plant in Kitakyushu, citing heavy investment burdens. The decision was finalized on May 9.
In a bid to overcome its financial difficulties, Nissan entered merger talks with Honda in December last year. However, negotiations collapsed in February after Honda reportedly proposed making Nissan a subsidiary. The failed deal has further worsened Nissan's business outlook.
Credit rating agency Moody’s downgraded Nissan’s rating to ‘Ba1’ earlier this year, citing weak profitability and an aging model lineup.
As a result, CEO Makoto Uchida stepped down at the end of March, taking responsibility for the poor earnings performance and the failed merger with Honda.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
