Nissan announced on Tuesday that it will significantly reduce its workforce and decrease production at its factory, a decision influenced by the results of the recently concluded fiscal year.
The Japanese automaker has stated its intention to cut its total workforce by 20,000 employees between fiscal years 2024 and 2027, which includes the earlier plan to let go of 9,000 workers.
Additionally, Nissan plans to reduce the number of its production facilities from 17 to 10 over the next two years.
“With the current performance challenges and rising variable costs, exacerbated by an unpredictable environment, we are focusing on increasing our urgency and speed, emphasizing self-improvement and profitability based on volume,” said Nissan’s President and CEO Ivan Espinos in a statement.
Espinos added, “As a new executive, we are taking a thoughtful approach, looking for every opportunity to reevaluate our objectives and ensure a solid recovery.”
The company reported a loss of $4.5 billion for the 2024 fiscal year.
In response to tariffs imposed by President Trump, Nissan indicated it would “prioritize products made in the U.S., enhance local capabilities, shift production impacted by tariffs, and collaborate closely with suppliers to quickly adjust to market needs.”
Espinos also noted that guidance for operating income, net income, and automotive free cash flow for the fiscal year is being established in light of the uncertainty regarding customs regulations.
