Nissan said on Tuesday it is making significant reductions to its workforce and scaling back factory production, citing results during its just-completed fiscal year.
The Japanese automaker said it is aiming to reduce its workforce by a total of 20,000 employees between fiscal years 2024 and 2027, which would include the previously announced reduction of 9,000 workers.
Nissan also announced it would reduce the number of its production plants from 17 to 10 within the next two years.
“In the face of challenging FY24 performance and rising variable costs, compounded by an uncertain environment, we must prioritize self-improvement with greater urgency and speed, aiming for profitability that relies less on volume,” Ivan Espinos, Nissan president and CEO, said in a statement.
“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,” Espinos added.
The company reported a $4.5 billion loss in fiscal year 2024.
Nissan said that it is “prioritizing U.S.-built products, optimizing local capacity, reallocating tariff-exposed production, and working closely with suppliers to localize and adapt swiftly to market demands” in response to U.S. tariffs imposed by President Trump.
“Given the uncertainty related to tariff environment, the guidance for operating profit, net income and auto free cash flow for the fiscal year are currently to be determined,” it added.
