The company has not disclosed which factories are due for closure, but it is predicted that its Sunderland factory, which employs 6,000 people, may be a likely candidate.
The company plans to cut 11,000 jobs on top of its recent 9,000 job losses announced in November, reducing the workforce by 15 percent.
Staff across manufacturing, sales, administration, and R&D will be affected.
Factory Closures and Job Losses at Nissan
This shake-up will reduce the number of factories from 17 to 10 by 2027 and save a total of £3.7bn for the company.
Nissan’s New Focus on Profitability Over Volume
Ivan Espinosa, CEO of Nissan, said in a press conference that the company will be focusing on profitability rather than volume. “In the face of challenging full-year 2024 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,” he said.
Declining Sales and the Impact of Tariffs on Nissan
The recent loss has been attributed to weakening sales in the US and China and the early effects of Trump Tariffs. In addition, talks with carmaker Honda over a possible merger failed.
