The Japanese manufacturer has presented a restructuring plan

Following the announcement of disastrous annual results, Japanese automaker Nissan Motor Co will close seven plants as part of a large-scale restructuring plan, leading to the loss of 20,000 jobs worldwide. This is stated in the company’s message.

In the 2024/2025 fiscal year (ended March 31, 2025), Nissan’s operating profit decreased by 87.7% year-on-year due to lower sales, a weaker portfolio, price pressure and higher costs. Overall, the company recorded a net loss of $4.5 billion in the fiscal year.

The financial results of the Japanese group will, among other things, affect the French manufacturer Renault Group, which holds a 35.71% stake in Nissan. Renault expects a negative impact of €2.2 billion in the first quarter of 2025 from impairment of assets and restructuring costs at Nissan.

The Japanese automaker predicts that in fiscal year 2025/2026, the business will continue to face difficult conditions due to fierce competition, currency and inflationary pressures.

On May 13, the company announced a recovery plan for Re:Nissan. As noted, it provides for decisive actions to improve efficiency and create a more flexible, sustainable business that can quickly adapt to market changes.

Through this plan, the automaker plans to achieve total savings of 500 billion yen ($3.4 billion) compared to the actual results of fiscal year 2024/2025 by saving on fixed and variable costs.

Re:Nissan, in particular, involves restructuring its production base and improving efficiency. Thus, the company will consolidate its car production plants from 17 to 10 by FY2026/2027 and plans to reduce the number of employees by 20 thousand in FY2024 to FY2027 (including the previously announced reduction of 9 thousand employees). The global workforce reduction includes direct/indirect positions and contractual positions in production, SG&A, and R&D.

Nissan is also reviewing its market approach to better meet the needs of local customers and adapt its product strategy to the updated vision. The market-specific approach includes positioning the United States, Japan, China, Europe, the Middle East and Mexico as key markets, and applying customized strategies to others.