Beleaguered automaker Nissan is set to axe an additional 10,000 jobs worldwide, bringing its planned global workforce reduction to nearly 15%, according to Japanese media reports on Monday.
The reported layoffs come just a day before Nissan is expected to announce a record annual loss of up to $5.1 billion for the 2024–25 financial year.
Japanese media reported that this move is in addition to the 9,000 job cuts the company announced in November. Nissan declined to comment on the new reports.
The once-dominant carmaker is grappling with a deepening financial crisis, rising competition from Chinese electric vehicle (EV) manufacturers, and deteriorating profitability across major markets.
Heavy Losses, Failed Merger, and Mounting Pressure
Nissan, one of the world’s top 10 automakers by unit sales, had pinned hopes on a merger with fellow Japanese carmaker Honda, but talks collapsed in February. Honda’s proposal to make Nissan a subsidiary rather than establishing a balanced holding structure reportedly derailed the negotiations.
In April, Nissan issued a grim profit warning, forecasting a net loss of 700 to 750 billion yen ($4.8–$5.1 billion) worse than its previous record loss of 684 billion yen during the 1999–2000 financial year.
The company, saddled with debt and an ageing product lineup, has also been downgraded to “junk” status by credit ratings agencies. Moody’s pointed to its “weak profitability” and an “ageing model portfolio” in its recent assessment.
Market Headwinds and Tariff Trouble
Nissan’s challenges are compounded by an increasingly hostile global trade environment. A proposed 25% tariff on imported vehicles by former U.S. President Donald Trump threatens to hit Nissan harder than its Japanese rivals. Analysts say Nissan’s customer base is more price-sensitive, making it difficult to pass additional costs onto consumers without sacrificing sales volume.
“Nissan can’t pass the costs on to consumers to the same extent as Toyota or Honda without suffering a significant loss in sales,” said Tatsuo Yoshida, a Bloomberg Intelligence analyst.
Struggles in China and Strategic Reversals
Despite early leadership in the electric vehicle market with models like the Leaf, Nissan has fallen behind newer players in China, the world’s largest EV market. Its planned $1 billion battery plant in southern Japan has already been shelved, a decision blamed on the “challenging business environment.”
The company has announced investments worth 10 billion yuan ($1.4 billion) in China in an effort to claw back market share, but analysts remain skeptical.
A Glimmer of Hope from Outside Players?
There may be external lifelines on the horizon. Taiwanese tech giant Hon Hai Precision (known globally as Foxconn) has expressed interest in acquiring Renault’s stake in Nissan. Foxconn is aggressively expanding into the EV space and has recently agreed to co-develop a vehicle with Mitsubishi Motors — another member of the Renault-Nissan alliance.
“External help is very much needed,” said Yoshida, noting that internal cost-cutting alone is no longer enough for Nissan to stay competitive.
Nissan’s share price has plummeted nearly 40% over the past year. With new leadership installed in March and its restructuring efforts facing growing skepticism, the company is under immense pressure to chart a new course — fast.
