Nissan to shut seven factories and slash 20,000 jobs globally in bid to cut costs

13 May 2025, 11:06

Japanese car giant Nissan has confirmed it will close seven factories and sack 20,000 people globally in a bid to cut costs.

This will see the manufacturer’s factory count drop from 17 to 10 and reflects an 11,000 increase in job losses from what the company initially planned.

Nissan is yet to confirm which factories will close - but the UK will be waiting to learn the fate of maker’s Sunderland plant- which employs around 6,000 people.

The changes are expected to affect around 15% of the company's workforce but it is not known where jobs will be cut across its global operations.

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The firm said the shake-up will help "create a leaner, more resilient business" as it also cautioned over the impact of US President Donald Trump's plans for 25% tariffs on cars imported into the US.

Nissan president and chief executive Ivan Espinosa said: "In the face of challenging full-year 2024 performance and rising variable costs compounded by an uncertain environment, we must prioritise self-improvement with greater urgency and speed, aiming for profitability that relies less on volume.

"As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery.

"Re:Nissan is an action-based recovery plan clearly outlines what we need to do now."

The car company has previously warned the UK Government against increasing demand for electicric vehicles - claiming it could put its Sunderland plant at risk.

The car manufacturer said that electric vehicle targets posed a risk to its factory in Sunderland.

Under the 'ZEV' (zero-emission-vehicle) policy, car manufacturers must meet annual sales targets for electric cars or they will be fined.

The ruling initially focused on manufacturers meeting an annual quota of 80% electric vehicle sales by 2030.