Nissan on May 13 announced sweeping cuts across the company with plans to lay off another 11,000 employees and close more than a half-dozen plants across the globe.
The latest cuts bring the carmaker’s total workforce reduction to roughly 20,000 jobs, which accounts for 15% of the Japan-based automakers workforce, according to Reuters and The Associated Press.
Following a whirlwind year, the company announced it would also close seven plants, Reuters reported. The move will cut the number of its production plants from 17 to 10.
It was not immediately clear which positions were being slashed and which plants were shuttering.
USA TODAY has reached out to Nissan.
Financial results a ‘wake-up call,’ CEO says
Nissan employs more than 133,000 people worldwide, according to Nissan’s Global website, with about 21,000 people, including manufacturing employees, in the United States.
The new layoffs will bring Nissan’s total workforce cuts to about 20,000 jobs. Last year, the automaker announced plans to cut 9,000 workers and previously announced nixing plans to build a plant in Japan.
“As you can see, our full-year financial results are a wake-up call,” newly named CEO Ivan Espinosa said during a press conference, according to Reuters and The Japan Times. The reality is very clear. Our variable costs are rising. Our fixed costs are higher than our current revenue can support.”
Espinosa, who replaced former CEO Makoto Uchida (2019-2025) recently revealed a handful of upcoming vehicles to the public recently including the new Leaf EV and the Kicks.
The hidden costs of owning a car: How fuel, maintenance and depreciation add up
Nissan layoffs come after retreating on merger
The move comes on the heels of Nissan facing a plethora of challenges including new management, falling sales, and potential merger or acquisition. But analysts don’t see the company failing anytime soon, the Detroit Free Press, part of the USA TODAY Network reported last month.
In December 2024, Nissan and Honda announced a plan to merge, but Nissan retreated from the negotiations in February.
This is a developing story.
Contributing: Reuters; Mark Phelan with The Detroit Free Press
Natalie Neysa Alund is a senior reporter for USA TODAY. Reach her at nalund@usatoday.com and follow her on X @nataliealund.
This article originally appeared on USA TODAY: Nissan layoffs, plant closures: Carmaker announces more cost cuts
