Nissan layoffs 11,000 More Jobs and Shut 7 Factories

Nissan layoffs 11,000 More Jobs and Shut 7 Factories

What is the reason for Nissan layoffs?

Nissan has announced another wave of job cuts eliminating 11,000 roles globally and closing seven factories. These changes are part of a larger effort to overhaul the company following a year of slumping sales, particularly in China and the United States, two of its largest markets.

This latest round of layoffs brings the total number of cuts over the past year to approximately 20,000 jobs, or about 15% of Nissan’s global workforce.

What’s driving Nissan’s struggles?

Several key issues have plagued the automaker:

  • Declining sales in China, where local competitors like BYD are dominating the electric vehicle market.
  • Heavy discounting in the U.S., which has eroded profits.
  • The collapse of a potential $60 billion merger with Honda and Mitsubishi earlier this year.
  • Uncertainty around U.S. tariffs, which have added pressure to Nissan’s financial performance.

These challenges have led to annual losses of over $4.5 billion, prompting the company to take aggressive cost-cutting measures.

Who is impacted by the cuts?

While Nissan has not provided a detailed breakdown of where the job cuts will occur, it confirmed that:

  • Two-thirds of the layoffs will affect manufacturing roles.
  • The remaining cuts will target sales, administration, research, and contract positions.

Nissan employs approximately 133,500 people worldwide.

Nissan had been in merger talks with Honda and Mitsubishi to counter rising competition in global auto markets. The deal would have formed the fourth largest automaker in the world. However, negotiations collapsed in February due to disagreements on structure and strategic direction. Following the failed talks, Nissan replaced then-CEO Makoto Uchida with Ivan Espinosa, formerly the automaker’s chief planning officer and motorsports head.

What’s Nissan’s outlook moving forward?

Nissan has not released a financial forecast for the upcoming year, citing the uncertain impact of global tariffs and rising operational costs. The company has also cancelled plans to build a new battery and EV plant in Japan, signaling a shift towards more conservative investment strategies.

Despite some signs of recovery in U.S. retail sales, Nissan continues to face steep challenges in China, Japan, and Europe. Sales dropped 12% in China alone and remain sluggish in other regions.

Nissan’s restructuring follows a broader trend of global automakers grappling with EV market shifts, economic pressure, and supply chain issues. Foreign automakers in China, in particular, are struggling to keep pace with innovative domestic brands that are rapidly gaining market share.

Have You Been Affected by Nissan’s Layoffs?

If you’ve been impacted by Nissan’s latest round of job cuts and are based in Ontario, you may be entitled to more severance than what’s initially offered.

In Ontario, non-unionized employees could be owed up to 24 months’ pay, depending on factors such as your position, age, tenure, and salary.

At Whitten & Lublin, we regularly help non-unionized, automotive, and manufacturing employees navigate layoffs and terminations. Contact us today at (416) 640 2667 or online to make sure you’re receiving the full compensation you deserve.

 

Related Posts