Nissan Motor Co is reportedly set to eliminate an additional 10,000 jobs worldwide, deepening its workforce reduction efforts as the troubled automaker grapples with what could be its worst annual financial loss on record. The latest cuts, reported by Japanese broadcaster NHK and the Nikkei business daily, come on the heels of a previous announcement in November to shed 9,000 positions.
If confirmed, the latest move would mark a total workforce reduction of approximately 15 per cent globally as Nissan attempts to navigate a landscape of mounting debt, intense competition, and faltering profitability. The company declined to comment on the latest media reports.
Nissan is expected to post a net loss of between 700 billion and 750 billion yen for the fiscal year ending March 2025. This would eclipse its previous record loss of 684 billion yen recorded in 1999-2000, a period marked by crisis that eventually led to its turbulent partnership with French automaker Renault.
The automaker, once a key player in the global automotive sector, is currently undergoing an extensive restructuring programme aimed at restoring financial stability and long-term viability. However, progress has been slow. The collapse of a proposed merger with domestic rival Honda earlier this year further diminished hopes for a rapid turnaround. Talks had failed in February when Honda suggested making Nissan a subsidiary rather than pursuing a merger under a unified holding structure.
Facing fierce competition in China’s dominant electric vehicle market, particularly from domestic giants such as BYD, Nissan has struggled to gain traction. Its electric vehicle lineup has been underwhelming, and recent efforts to make inroads have yet to bear fruit. In an attempt to remain relevant in the world’s largest EV market, Nissan pledged an investment of 10 billion yuan into its China operations.
Nissan’s global challenges have been compounded by geopolitical and economic factors. One such blow came from the United States’ imposition of a 25-per-cent tariff on all imported vehicles under the previous Trump administration. Analysts believe Nissan is particularly exposed due to its cost-conscious customer base in the US market, making it difficult for the company to absorb or pass on the tariff burden without sacrificing sales volumes. According to Bloomberg Intelligence analyst Tatsuo Yoshida, Nissan is less able to offset such costs compared to more premium brands like Toyota or Honda.
Internally, Nissan’s troubles have also been structural. Moody’s and other credit rating agencies have downgraded the company’s rating to junk status, citing weak profitability and an ageing vehicle portfolio. Shares have tumbled nearly 40 per cent over the past year, and the company is still recovering from the fallout of the 2018 scandal involving former chairman Carlos Ghosn, who dramatically fled Japan in a flight case amid financial misconduct charges.
A change in leadership earlier this year saw a new chief executive appointed in March, a move seen as an attempt to chart a new course. Yet challenges remain. In another setback, Nissan recently scrapped plans for a US$1 billion battery manufacturing plant in southern Japan, citing the increasingly unfavourable business climate.
There may be a glimmer of hope in the form of external support. Taiwanese tech giant Hon Hai Technology Group, better known as Foxconn, has expressed interest in acquiring Renault’s stake in Nissan. More recently, Foxconn agreed in principle to co-develop and supply an electric vehicle to Mitsubishi Motors—one of Nissan’s alliance partners—potentially paving the way for future collaborations.
Analysts like Yoshida argue that outside assistance is critical. Nissan, he noted, can no longer rely on internal cost-cutting measures alone to regain competitiveness. A strategic partner with strong technical capabilities and financial strength may be essential for the automaker to restore its place in the industry.
For now, however, Nissan faces a period of painful transition, with further layoffs and losses expected to dominate the immediate horizon.
