Nissan puts 15 % of the global workforce amid sales slipping around the world

Nissan reduces about 15 % of the global workforce, or about 20,000 employees, as the Japanese auto industry company reported a loss on Tuesday for the fiscal year that has just ended amid vehicle sales in China and other countries, and the costs of high restructuring.

Nissan said that it would reduce the number of its car factories to 10 out of 17, in light of what it described as the recovery plan to implement “decisive and bold procedures to enhance performance and create smaller and more flexible business that quickly adapt to market changes.” No closed plants, but confirmed that the closures would include factories in Japan.

“We have a mountain of climbing,” the CEO of Ivan Espinoza told reporters, stressing that the task will not be easy, which requires discipline and teamwork. “Starting today, we build the future for Nissan.”

The functional cuts to be performed by March 2028 include a reduction of 9,000 heads announced last year. Nissan also announced that plans to build a battery factory in Japan.

Espinoza, who took leadership earlier this year, said that the latest plans followed a careful review of operations, to align production with demand, including the exit of market and product strategies. He said that Nissan will also benefit from its partnerships such as those with Renault SA from France in Europe and Dongfeng Nissan in China.

Nissan said President Trump’s tariff on auto imports had damaged the results of the company. Yokohama, the Japanese auto company, made a loss of $ 4.5 billion for the fiscal year until March. He also said that the recovery plan includes an attempt to reduce costs by $ 3.4 billion.

“As a new administration, we follow a wise approach to re -evaluating our goals and actively looking for every possible opportunity to implement and ensure a strong recovery,” said Espinosa.

Nissan aims to return to profitability by the fiscal year 2026.

However, the financial manager of Nissan Jeremy Babin admitted that the auto company was facing serious challenges. Nissan did not give a profit for the fiscal year until March 2026, citing uncertainty.

Definitions weighing on automobile companies

Trump administration in March A 25 % tariff imposition Nearly 8 million cars gathered abroad, imported by the United States annually.

General Motors said earlier this month Reduce profit expectations For the year, as it is preparing for the potential impact of the car tariff of up to 5 billion dollars in 2025. The revised expectations came after Mr. Trump signed executive orders in April To relax some definitions On cars and auto parts.

Ford Motors also referred to a higher American tariff in announcing that last week It raises prices On three models produced in Mexico. Toyota said last week that Mr. Trump’s tariff would cost the company $ 1.3 billion In just two months. The auto maker stopped making predictions about the future tariffs, as the CEO of Toyota Koji Sato said that any effect in the future would be “very difficult to predict.”