Loss of millions, falling sales in China and Trump tariffs effect leads to Japanese to a drastic restructuring plan. But there is enough money, says company.
The Japanese automotive company announced on Tuesday that it will end seven of 17 Factories until 2027, as part of a drastic restructuring plan.
Restructuring measures will lead to Nissan to suppress 20,000 jobs until 2027, that is, 15% of staff of the company around the world.
In November last year, Nissan had already announced the dismissal of the first nine thousand workers worldwide.
Nissan is reducing 15% of the global workforce following a prejudice relative to the fiscal year that has just finished, especially due to drop in sales of vehicles in China and other markets.
According to Nissan, workers and factories reduction measures are included in the recovery plan that intend to carry out, namely “decisive and bold to improve performance and Create a simpler and more resistant business that quickly adapts to market changes. ”
“If this situation continues forever, It can be a fatal blow to Nissan, In the sense that it will run out of money and will be non -compliance, ”analyst Tatsuo Yoshida warned in April.
Trump fares helped the decision
The Yokohama -based car manufacturer, Japan, also said that the rates announced by US President Donald Trump about car imports also affected the results.
The Japanese company announced a Annual net loss of 671 billion yen (4.1 billion euros) In the financial year 2024-2025, mainly due to restructuring costs.
The group did not publish any predictions for the next financial year 2025-2026, marked by a great uncertainty in relation to any US tariffs.
Nissan’s chief financial officer Jeremie Papin told reporters that the Japanese car manufacturer faces “serious challenges” to revert the situation, but stressed that he has enough money to perform the plans.
