Nissan Motor’s Major Crisis: Massive Layoffs and Factory Shutdowns Announced!

Nissan Motor Co. is making some tough changes as it works to turn things around. The company has announced plans to lay off 20,000 workers—about 15% of its workforce—and shut down seven factories around the world. These cuts and closures are part of a major restructuring effort to help the company recover from financial losses.

This restructuring plan, called ‘Re:Nissan,’ comes after Nissan posted a huge loss of ¥670.9 billion (about $4.5 billion) for the fiscal year ending March 2025. That’s a big drop from the previous year when the company was still in the black. In total, Nissan wants to save around ¥500 billion (or $3.4 billion) to get back to making a profit by 2026.

Under the leadership of new CEO Ivan Espinosa, who took over in April 2025, the company is trying to cut costs and become more efficient. Espinosa admits that part of the company’s trouble stems from over-expansion and setting unrealistic sales goals back in 2015. He believes the restructuring will help Nissan Motor come out of this situation stronger and more streamlined.

Nissan’s problems also come from declining sales in key markets, like the U.S. and China. On top of that, the company faces increasing competition from Chinese electric car makers, who have become much stronger in recent years.

In addition to these issues, Nissan’s plans for a merger with Honda fell through, and U.S. tariffs on foreign cars have added extra pressure on the company. All of this has made it harder for Nissan Motor to compete globally.

As part of the restructuring, Nissan will cut its vehicle lineup by 70%, focusing only on its most important and profitable models. By simplifying its cars and parts, Nissan hopes to lower costs and improve efficiency.

The company is also looking to strengthen its partnerships with other carmakers like Renault, Mitsubishi, and Dongfeng. Working together more closely will help Nissan stay competitive as the auto industry moves toward electric vehicles and more eco-friendly technologies.