Mass Layoffs Double Initial Estimate
Japanese automaker Nissan is set to eliminate approximately 20,000 jobs worldwide—twice as many as previously planned. The announcement, reported by Japanese broadcaster NHK, comes just hours before the company is scheduled to present its financial results. The decision highlights the severity of the company’s financial struggles.
Losses Far Exceed Expectations
Nissan is in the midst of a deepening crisis. The company reported a net loss of up to 750 billion yen (about €4.6 billion) for the last fiscal year—far above the earlier forecast of 80 billion yen (around €490 million). The unexpectedly large deficit stems largely from massive write-downs in North and South America, Europe, and Japan. These write-downs alone account for over 500 billion yen (€3.1 billion) in losses. On top of that, restructuring efforts have added more than 60 billion yen (€370 million) in additional costs.
Electric Vehicle Battery Plant Canceled
As part of its cost-cutting measures, Nissan has also scrapped a major initiative for the future: the construction of a new battery plant for electric vehicles in Kyushu. The project, which was scheduled to begin operations in 2028, would have required an investment of $1.1 billion (approximately €990 million) and created 500 new jobs. Although the Japanese government had already pledged financial support, Nissan has decided to abandon the plan, citing doubts about the project’s profitability.
Alliance with Honda Falls Apart
In December 2024, there appeared to be hope for a turnaround through a strategic partnership with Honda. The companies were reportedly planning to form a joint holding company to oversee their operations. However, by February 2025, both Nissan and Honda confirmed that negotiations had ended.
While the two automakers claim they will maintain a loose partnership focused on software development and electric mobility research, internal disagreements appear to have derailed a full merger. Sources suggest that deep-rooted mistrust played a key role—Nissan reportedly resisted the idea of becoming a Honda subsidiary. Mitsubishi, also a member of the alliance, remained hesitant throughout the talks.
