Nissan job cuts double to 20,000 in huge overhaul

Article content

Nissan Motor Co. will eliminate 11,000 more jobs than previously planned, NHK reported Monday, as part of a plan to restructure its flailing business.

The Japanese carmaker said in November it would cut 9,000 positions after weak sales in the US and China led to a 94% drop in first-half net income. Now those job cuts will be closer to 20,000, or around 15% of the entire workforce, according to Japan’s national broadcaster. The redundancies will occur both at home and overseas, it added.

Nissan declined to comment.

Nissan’s crisis is in danger of getting even worse after the company warned shareholders last month that it will see a net loss on restructuring costs of as much as ¥750 billion ($5 billion) for the fiscal year that ended March 2025.

The breadth of the automaker’s financial woes first became clear late last year when as well as the 9,000 job cuts, it announced it would reduce production capacity by 20% and slashed its profit guidance. Nissan has since further lowered its outlook, as it buckled under aggressive competition in the US and China.

A lifeline from its peer, Honda Motor Co., looked somewhat promising when the pair signed an agreement in December to combine both brands under a single holding company. However within weeks, what could’ve have created one of the world’s biggest carmakers — at least in theory — fell apart due to disagreements over an inherent power imbalance between the two legacy brands.

The alliance was formally ended in February, and Nissan has been sliding further into its worst position in some 26 years. Despite the failed merger, Nissan and Honda are continuing a strategic partnership focused on EVs and batteries, leaving room for future talks.

Nissan also doesn’t have a strong lineup of hybrid vehicles to offer customers in key markets and has been embroiled in management turmoil and infighting since former Chairman Carlos Ghosn was arrested and ousted in 2018.

Meanwhile, President Donald Trump’s tariffs on cars and car parts imported to the US have been painful to most global brands, but crippling in Nissan’s case.

Aside from its sales challenges, Nissan’s liabilities are also poised to rise dramatically. Nissan and its affiliates face $1.6 billion in debt maturities this year, rising to $5.6 billion in 2026 — the highest level since at least 1996, according to data compiled by Bloomberg.

Ivan Espinosa, who was appointed chief executive officer in April, faces the hefty task of turning Nissan’s fortunes around. He’ll be expected to shed light on speculation over job cuts and potential plant closures when Nissan announces fiscal results on Tuesday.