Nissan has just announced plans to cut another 11,000 jobs across its global operations. This brings the total number of job cuts to 20,000, or about 15% of the company’s total workforce. You might be wondering, why so many layoffs? According to Nissan’s new CEO, Ivan Espinosa, the company’s latest financial report was a “wake-up call.”
In his words, “Our variable costs are rising. Our fixed costs are higher than our current revenue can support.” In simple terms, Nissan is spending more than it is making — and something had to give.
Here is what is going on:
- Falling vehicle sales
- Increased production costs
- Revenue not keeping up with expenses
- A tough global market made worse by tariffs and economic slowdowns
These issues forced the automaker to make some tough decisions — starting with more layoffs.
How many U.S. jobs will be affected by Nissan layoffs?
Right now, Nissan employs about 21,000 people in the U.S., including those in manufacturing. It is not yet clear how many American workers will lose their jobs, but with these global cuts, many are worried.
If you work at or near a Nissan plant, or if you rely on them for jobs in your community, this news probably feels personal. And that is understandable. Nissan has not released a full breakdown of which countries will be most affected, but U.S. plants are definitely on the radar.
Here is what we know:
- Some U.S. positions could be on the chopping block
- Uncertainty is high among workers
- Nissan has not yet shared the full list of plant closures
What plants is Nissan closing and where?
Nissan said it would close seven of its production plants, cutting its total number of factories from 17 to just 10. So far, the company has not shared which specific plants are shutting down. That means thousands of workers are left waiting — unsure if their jobs are safe or not.
If you are in a city with a Nissan plant, this could mean:
- Plant shutdowns in your region
- Local job loss beyond Nissan (think suppliers, service businesses, etc.)
- Less investment in manufacturing in the near future
Did Trump’s tariffs contribute to Nissan’s troubles?
You may be asking, Did Trump’s trade policies have anything to do with this? Many analysts believe tariffs played a major role in pushing up Nissan’s production costs, especially in the U.S.
Here is what likely added fuel to the fire:
- Higher import/export costs due to U.S. tariffs
- Rising material costs for steel, aluminum, and auto parts
- Reduced consumer demand due to more expensive cars
Even though Nissan faced other challenges like falling global sales and internal restructuring, these tariffs made it even harder for the company to stay afloat without major cutbacks.
What does this mean for the future of Nissan?
While the situation looks bad, experts say Nissan is not on the brink of collapse. The company is taking drastic action now to reset its business and stay competitive.
Still, the road ahead is bumpy. With a retreat from its merger talks with Honda, leadership changes, and now massive layoffs and closures, Nissan is in the middle of a major shakeup — and only time will tell how it ends.
