Nissan Motor Co., Ltd. has announced a comprehensive turnaround plan aimed at revitalizing its business and achieving long-term profitability. The automaker is set to implement sweeping cost-cutting measures and operational efficiencies, with a targeted cost reduction of 400 billion yen by fiscal year 2026.
Cost Reduction and Efficiency Enhancements
Nissan President and CEO Makoto Uchida emphasized the company’s commitment to streamlining operations while driving top-line growth. “Nissan is fully committed to its turnaround actions, aiming to reduce costs by around 400 billion yen. We are dedicated to achieving a more efficient cost structure while driving top-line growth through enhanced competitive products that cater to the diverse needs of our customers,” Uchida stated.
To achieve this, Nissan aims to cut more than 300 billion yen in fixed costs. The breakdown includes 200 billion yen from selling, general, and administrative (SG&A) expenses, 100 billion yen from restructuring manufacturing bases, and 30 billion yen from development efficiencies. The company also plans to reduce 2,500 global indirect employees through streamlining operations, hiring reductions, and voluntary separation programs.
A further 100 billion yen will be saved through production optimization. Nissan will consolidate production lines, adjust shift patterns, and transfer jobs, initially impacting three plants in the U.S. and Thailand in Q1 FY25. This restructuring will result in the reduction of 6,500 jobs across vehicle and powertrain plants by FY26. Additionally, Nissan aims to cut variable costs by approximately 100 billion yen through design simplifications and operational efficiencies.
Reshaping Global Production and Workforce
Nissan plans to reduce global production capacity by 20% by fiscal year 2026, lowering it from 5 million to 4 million units. The company has already begun rightsizing efforts in China, reducing capacity from 1.5 million to 1 million units. Manufacturing efficiency improvements will increase plant utilization rates from 70% in FY24 to 85% in FY26.
As part of its restructuring, Nissan will enhance development efficiency through its “family development concept,” which aims to shorten time-to-market and reduce costs by approximately 30 billion yen. The first vehicle utilizing this method is expected to launch in fiscal year 2026.
Driving Growth Through Innovation and Market Expansion
Despite cost-cutting measures, Nissan remains committed to innovation and top-line growth. The automaker plans to introduce a variety of new models equipped with advanced technology. Recent updates include refreshed versions of the Qashqai, Juke, Kicks, Armada, Note, Patrol, Magnite, QX80, and Murano.
In fiscal years 2025 and 2026, Nissan will roll out new plug-in hybrid models and expand its zero-emission EV lineup with an updated LEAF, an all-new compact EV, and a new NEV for the Chinese market. The third-generation e-POWER models will offer improved fuel efficiency and cost reductions, strengthening Nissan’s position in the electrification race. Additionally, the company plans to integrate intelligent cockpit and driver assistance features into future vehicles, paving the way for door-to-door autonomous driving and driverless mobility services by fiscal year 2027.
Organizational Restructuring and Strategic Partnerships
Nissan is also making structural changes to improve decision-making efficiency. The company will adopt a “single-layer, non-officer” framework, reducing top management positions by 20% while creating more advancement opportunities for the next generation. Organizational layers will be simplified, and control structures expanded to enhance operational agility.
As part of its broader business restructuring, Nissan will review its market presence and product portfolio to prioritize strategic investments. The company will also accelerate collaborative projects with its Alliance partners and other industry players, including Honda.
Nissan has already begun implementing these measures and will provide further updates within the coming month. With a combination of aggressive cost-cutting, strategic restructuring, and technological innovation, the automaker is positioning itself for a leaner, more resilient future.
Industry analysts will be watching closely to see how these measures impact Nissan’s performance in the highly competitive automotive landscape.
