Nissan more than doubles layoffs to around 20,000

CNN - May 13th, 2025

Nissan announced plans to cut an additional 11,000 jobs and scale back production, marking a significant restructuring effort after a challenging year for the automaker. This decision brings the total job cuts to approximately 20,000, following an earlier announcement of 9,000 layoffs. The move comes as Nissan grapples with an 88% decline in operating profit, down to 69.8 billion yen, and struggles in key markets like the United States and China. New CEO Ivan Espinosa acknowledged the gravity of the situation, describing the recent financial results as a 'wake-up call' for the company. Despite the cost-cutting measures, Nissan anticipates a 200 billion yen operating loss in the first quarter, according to CFO Jeremie Papin.

The job cuts and reduced production are part of a broader strategy to achieve 500 billion yen in cost savings by 2024. This involves cutting the number of production plants from 17 to 10 and simplifying parts by 70%. The company is pivoting away from an over-reliance on sales volume, a strategy heavily emphasized during the tenure of former Chairman Carlos Ghosn. This approach led to an aging product lineup that Nissan is now rushing to modernize. The automaker faces additional challenges from US tariffs and competition from Chinese electric vehicle manufacturers, further complicating its path to recovery. Espinosa emphasized the need for urgency in self-improvement to restore Nissan's profitability and brand value.

Nissan Electric Vehicles Automotive Industry Job Cuts Ivan Espinosa Us Tariffs Jeremie Papin Carlos Ghosn Profit Decline Production Reduction Chinese Market

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RATING

7.0

Fair Story

Consider it well-founded

The article effectively communicates key developments in Nissan's strategic and financial landscape, providing timely and relevant information about the company's challenges and responses. It achieves a high level of factual accuracy, though it could benefit from more detailed sourcing and expert insights to enhance credibility and balance. While the narrative is clear and accessible, further exploration of the broader implications and potential controversies could increase its engagement and impact. Overall, the article serves as a solid overview of Nissan's current situation, with room for deeper analysis and context.

Accuracy

The story accurately reports on Nissan's decision to eliminate an additional 11,000 jobs, bringing the total workforce reduction to around 20,000. This aligns with verified reports and Nissan's announcements. The financial figures, such as the 88% decline in operating profit and the expected 200 billion yen operating loss, are consistent with Nissan's documented financial struggles. However, the article could benefit from more precise sourcing to strengthen its claims. The mention of merger talks with Honda and competition from Chinese electric vehicle makers is accurate and reflects broader industry trends.

Balance

The article presents a balanced view of Nissan's challenges and strategic responses, such as job cuts and production adjustments. It highlights the company's financial difficulties and market pressures without overly favoring any particular perspective. However, it could include more insights from external analysts or industry experts to provide a broader range of viewpoints, particularly regarding the impact of leadership changes and competitive pressures.

Clarity

The article is well-structured and clearly communicates the key points regarding Nissan's job cuts and financial issues. The language is straightforward, and the information is logically presented, making it accessible to a general audience. However, some complex financial details could benefit from further simplification or explanation to enhance comprehension.

Source quality

The article relies on general statements about Nissan's announcements and industry trends, but it lacks specific attributions to authoritative sources or direct quotes from company officials. Including statements from Nissan's press releases, financial reports, or interviews with executives would enhance the credibility and reliability of the information presented.

Transparency

The article provides a clear account of Nissan's strategic decisions and financial challenges but lacks detailed explanations of the sources and methods used to gather this information. Greater transparency regarding the basis for claims, such as direct references to company reports or official statements, would improve the reader's understanding of the context and reliability of the information.