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Nissan’s Road to Recovery: Job Cuts, Plant Closures, and Restructuring

Nissan’s Road to Recovery: Job Cuts, Plant Closures, and Restructuring
 

Nissan’s new CEO, Ivan Espinosa, has announced a bold short-term strategy to address the company’s ongoing struggles. Espinosa emphasized his commitment to restructuring the Japanese automaker, which has been grappling with declining sales, stiff global competition, and the costly transition to electric vehicles.

 

A Focused Turnaround Plan

Espinosa, who took over as Nissan’s CEO in April 2025, is confronting significant challenges to reverse the company’s deteriorating fortunes. Speaking about the company’s immediate priorities, he stated, “The focus that we have is to fix ourselves. We are convinced that the plan is enough and robust.”

The automaker has launched the Re:Nissan plan, aimed at resizing the company’s operations and cutting costs. This includes slashing 11,000 jobs and closing seven manufacturing plants. These efforts are expected to counteract an anticipated 3% drop in sales volume this fiscal year.

 

A Long Road Ahead

Nissan’s financial troubles are rooted in decisions made almost a decade ago. Between eight and ten years ago, the company had set lofty annual sales targets of 8 million cars, leading to heavy investments in capacity, human resources, and infrastructure. However, the company peaked at 5.6 million annual sales in 2016 and has since declined to 3.3–3.4 million cars per year.

“We are re-sizing the company, and this is why we have accelerated our efforts on cost,” Espinosa explained. “This transformation is addressing a fundamental problem that started years ago.”

 

External Pressures Add to Nissan’s Challenges

Nissan’s issues are compounded by external factors, including U.S. President Donald Trump’s recent decision to impose sweeping 50% global tariffs on steel and aluminum. These tariffs have further squeezed the automaker’s margins, making its recovery efforts even more urgent.

Additionally, the company is struggling to compete globally, particularly against aggressive Chinese automakers in the electric vehicle space. Talks of a potential merger with Japanese rival Honda, which could have created the world’s third-largest automaker, fell apart earlier this year.

 

A Glimpse of Hope?

Despite the challenges, Espinosa remains optimistic about Nissan’s future. He acknowledged the scale of the task, saying, “The size of the task is big. Our landing was not good in 2024… but this is a problem we are fixing.”

The company’s cost-cutting measures, combined with a renewed focus on streamlining operations, are part of its strategy to regain profitability. However, the road ahead will require significant effort and resilience.

 

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