Nissan, the Japanese car manufacturer, has raised its target for job reductions to 20,000 as part of its recovery strategy known as “Re-Nissan.” The company plans to eliminate a total of 20,000 positions by 2027, a significant increase from the previous plan. During a challenging period in fiscal year 2024, Nissan faced rising variable costs and an uncertain environment, prompting the need for further cuts. Through the “Re-Nissan” program, Nissan aims to achieve savings of nearly $3.4 billion (500 billion yen) compared to fiscal year 2024. This involves not just job cuts but also streamlining operations by reducing the number of Nissan plants from 17 to 10 by 2027.
The initial announcement in November 2024 indicated a global reduction of 9,000 jobs, with then-Nissan President and CEO Makoto Uchida leading by example through a voluntary reduction of half his monthly compensation. In FY 2024, Nissan recorded global sales of 3.346 million units but also reported a net loss of over $4.5 billion (670.9 billion yen). The company faced challenges in various markets, including a decline in sales in China, where Nissan plans to emphasize electric vehicles as part of its recovery efforts.
With uncertainties surrounding President Donald Trump’s tariffs, Nissan’s outlook for FY 2025 remains uncertain. The company is focusing on U.S.-built products, optimizing local capacity, and reallocating production to minimize the impact of tariffs. Specific guidance on operating profit, net income, and auto-free cash flow for the fiscal year is yet to be determined due to the tariff environment.
Japanese Prime Minister Shigeru Ishiba, who had discussions with President Trump in Washington, D.C., expressed his commitment to advocating for the elimination of U.S. tariffs to enhance trade relations. Ishiba noted that discussions with the U.S. have shown progress and highlighted the positive relationship with President Trump.
