Today, Nissan President and CEO Ivan Espinosa released the details of Re:Nissan, the company’s bold recovery plan, which “implements decisive and bold actions to enhance performance and create a leaner, more resilient business that adapts quickly to market changes.”
According to Espinosa, Re:Nissan will:
· Aim for positive operating profitability and free cash flow in the automotive business by FY 2026.
· Achieve total cost savings of 500 billion yen vs FY24 actuals in fixed and variable costs.
· Reduce workforce by 20,000 and plants from 17 to 10 by FY 2027.
Espinosa told investors, “In the face of challenging FY24 performance and rising variable costs, compounded by an uncertain environment, we must prioritize self-improvement with greater urgency and speed, aiming for profitability that relies less on volume. As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery. Re:Nissan is an action-based recovery plan clearly outlines what we need to do now. All employees are committed to working together as a team to implement this plan, with the goal of returning to profitability by fiscal year 2026.”
The company stated, “With Re:Nissan, the company targets a total cost savings of 500 billion yen versus fiscal year 24 actuals in fixed and variable cost savings. These savings will establish a framework to secure operating profitability and free cash flow in the automotive business by fiscal year 2026.”
Today’s projected staff reductions include an extra 11,000 employees from Nissan’s global workforce, raising the total layoffs to 20,000.
Nissan did not say which factories were due for closure.
By CEO NA Editorial Staff
