Billions in Cuts, 20,000 Jobs Gone: Nissan’s Radical Survival Plan

A Nissan source told Nikkei Asia, “Compared to the era of former President Makoto Uchida, who did not touch any fundamental reforms, this is 100 times better. But this is still not a normal company.” As it seeks to cut costs, the automaker plans to shutter as many as seven of its global manufacturing locations, including one of its most historic facilities in Japan.

Nissan’s free cash declined in the second quarter of 2025, coinciding with a sales slide in every global market. The automaker’s cost-cutting efforts aim to shave 500 billion yen from its fixed and variable costs, which includes 20,000 job cuts with the factory closures. Nissan could save hundreds of billions of yen from the job cuts, but much of the savings will be offset by severance pay and pensions for those workers.

Beyond cost cuts, Nissan doesn’t have a “killer app” on the horizon that could help it turn the corner. It plans to bring its e-Power hybrid system to the U.S. soon, but some believe the tech won’t resonate with American buyers, saying the hybrids don’t jive with the higher-speed roads here. That said, some automakers are backtracking on electrification plans to focus on lower-cost hybrids, so Nissan could be on to something.

Unfortunately, new vehicle development costs a ton of money, and Nissan’s revenues will likely decrease as it cuts production capacity, so there’s no telling how or when the automaker might refresh its lineup. Advanced software-defined vehicles have tripped up some of the world’s largest automakers, driving up development costs, which is a hurdle Nissan might not be able to afford.