Nissan to Close Seven Factories, Cut 20,000 Jobs

Nissan revealed its plan to shut down seven factories and cut 20,000 jobs worldwide because of last year's difficulties. The company will implement 11,000 additional layoffs in addition to the 9,000 positions eliminated in November which will affect manufacturing operations as well as sales and administration and research and development across all global regions. The Sunderland plant in the UK operates with 6,000 employees but remains exempt from the announced factory closures. Nissan plans to reduce its factory count from 17 to 10 by 2027 while saving 500 billion yen (£2.6bn) and shortening its supply chain by working with fewer suppliers. New CEO Ivan Espinosa stated that profitability takes precedence over volume during his address to the company's 671 billion yen (£3.4bn) net loss for the year ending March. The combination of weak US and China sales with Trump's trade war and the failed $60bn Honda merger merger resulted in the company's downturn. The company plans to reduce its hourly workforce expenses by 20% through R&D optimization and by moving operations to more competitive geographic areas. The company plans to recover its declining brand value through this transformation which addresses both rising costs and economic instability. The announcement demonstrates how the auto industry faces challenges from trade barriers and changing consumer preferences as Nissan chooses efficiency to survive the volatile worldwide market.