Nissan Cuts 11,000 Jobs as New CEO Targets Profit Over Volume Amid Sales Slump

Nissan Motor (OTC:NSANY) announced on Tuesday that it will slash 11,000 additional jobs and significantly reduce production as part of a sweeping cost-cutting strategy aimed at reviving the struggling Japanese automaker. The move brings total job cuts to around 20,000, highlighting the company's urgent need to reset its operations after a turbulent year.

For the fiscal year ending March 2025, Nissan’s operating profit plummeted 88% to 69.8 billion yen ($472 million), as weak sales in core markets like the U.S. and China continued to erode its financial health. The automaker refrained from providing a forecast for the current fiscal year, reflecting ongoing uncertainty.

The company is also reeling from the collapse of merger talks with Honda (NYSE:HMC) and a recent leadership shake-up that saw Ivan Espinosa appointed as CEO. Espinosa now faces the daunting challenge of shifting Nissan’s strategy from aggressive volume-driven growth—an approach championed by former Chairman Carlos Ghosn—to one focused on profitability and brand restoration.

To achieve this, Nissan aims to cut costs by 500 billion yen, reduce its number of production plants from 17 to 10, and simplify vehicle components by 70%. These drastic steps are designed to streamline operations and boost efficiency as the company struggles to regain competitiveness in the global automotive market.

Industry analysts say Nissan is paying the price for years of discount-driven sales tactics that damaged brand value. The company now seeks a fresh start, focusing on sustainable profits rather than market share alone. As the global auto industry evolves with the rise of electric vehicles and shifting consumer demand, Nissan’s turnaround strategy will be closely watched by investors and competitors alike.