Nissan Motor is preparing for one of its most significant restructuring moves to date, with plans to cut around 20,000 jobs, globally and explore the sale of its Yokohama headquarters. The measures are part of a broader strategy to manage rising costs, streamline operations and reduce debt.
Nissan’s restructuring plan includes a significant transformation of its vehicle- development process. The company’s aim is to bring down the number of vehicle- platform architectures from 13 to 7 and reduce parts complexity by 70 per cent. These changes, it is hoped, will speed up production cycles and save costs across departments. Employees from the research and development team are being reassigned to support this transition.
The overhaul, as part of the ‘Re:Nissan’ initiative, will cost an additional 60 billion yen (about $415 million) in the current fiscal year. The long-term goal is to save over$ 3 billion and become profitabile by 2026.
Along with the job cuts, the company is also considering selling its iconic headquarters building in Yokohama, valued at over 100 billion yen (approximately $698 million). To prevent operational disruption at the site, Nissan is considering a sale-and-leaseback arrangement, so that the facility can be used even while freeing up capital.
Proceeds from the sale could help handle costs linked to the planned closure of seven manufacturing facilities, including the Oppama and Shonan plants in Japan. However, the Tochigi plant is expected to remain operational as it is crucial to vehicle testing and development.
With competition increasing and uncertainty growing globally, Nissan’s leaders are seeking swift action. The potential sale of its headquarters indicates the company’s urgency to adopt measures to ensure stability, growth and long-term security.
