Crikey, Nissan’s cutting 20,000 jobs, shutting seven factories and pausing new cars

Nissan will cut 20,000 jobs, close seven factories and pause all post-2026 new car development as part of a radical new recovery plan.

After posting a £3.4bn loss, new CEO Ivan Espinosa has instead directed 3,000 people to focus fully on “cost reduction initiatives”. The target is to save 250 billion yen (£1.2bn) by 2026, compared to 2024 numbers.

That means slashing 20,000 jobs globally – including the previously announced cut of 9,000 – from manufacturing, SG&A, and R&D by 2027. It will also look to close seven factories – 17 down to 10 – in two years, along with ‘streamlining’ its powertrain plants, adjusting work shifts and reducing capital expenditure.

That means cancelling the planned lithium-ion phosphate battery plant in Kyushu.

Further, Nissan will temporarily pause “advanced and post-FY26 product initiatives” that’ll free up those 3,000 people to work on saving money instead.

It’ll also look to reduce engineering costs, cut parts complexity by 70 per cent, cut the number of platforms it uses for its cars from 13 to seven by 2035, and shorten the development time down to 30 months. The first cars developed under this new regime include the new Skyline (not that one), a new ‘global C SUV’, and Infiniti’s compact SUV.

The new strategy will apparently be “centred around signature Nissan models that deliver strong nameplates which represent the heartbeat of Nissan globally”; models that crucially, sell in big numbers. Qashqai’s probably safe, then.

Espinosa said: "In the face of challenging FY24 performance and rising variable costs, compounded by an uncertain environment, we must prioritise self-improvement with greater urgency and speed, aiming for profitability that relies less on volume.

“As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery.

“Re:Nissan is an action-based recovery plan that clearly outlines what we need to do now. All employees are committed to working together as a team to implement this plan, with the goal of returning to profitability by fiscal year 2026."