The changes to the auto industry in 2025 have been staggering, but none as hard-hitting as Nissan’s plant shutdowns, particularly the Oppama plant that has been operational since 1961. Nissan is conducting heavy layoffs in Japan, shuttering many of its manufacturing plants to keep up with the trying times that have affected the business. Nissan’s 2025 plant closures are part of its Re:Nissan recovery strategy that is being spearheaded by new CEO Ivan Espinosa, and around 7 major plants are expected to be affected by the shutdown.
The Nissan plant shutdowns will inevitably mean a reduced need for such a large workforce, and as a result, 22,000 workers are expected to be affected by the cuts. Nissan’s Japan job cuts will not occur in 2025 exclusively, but will extend to 2027. Nissan intends to complete its plant closures by then and rid the business of dead weight in hopes of a fresh approach to production in the future.
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The Nissan Plant Shutdowns to Affect Seven of Its Major Plants
Nissan, Japan’s third-largest automaker, has been a big name in the industry for decades, but its performance on the market in recent years has suffered greatly. The company has struggled in key markets like the US and China, and has not managed to bring the sales numbers up by any measure. While it laid off workers and levied a hefty pay cut on its former CEO to cut the company’s costs last year, things did not vastly improve for the company. Nissan even explored a merger with competitors Honda and Mitsubishi, but the deal fell through in February.
Ivan Espinosa took on the role of CEO at the end of March in hopes of turning the business around, and it is his Re:Nissan recovery strategy that is leading the way forward for the business. Just as with Starbucks and Intel, the arrival of a new leader is inevitably followed by a new business strategy to revitalize the business prospects, but unfortunately, Nissan is turning to layoffs in Japan as part of this larger transition.
The Nissan Layoffs Are Expected to Affect 22,000 Jobs
The flagship Nissan Oppama plant shutdown in Kanagawa, Japan, will result in production winding down at the center by fiscal year 2027. Reportedly, neighboring sites for testing and research will remain open for now, but the productions will be moved to Kyushu in Fukuoka, Japan. The closure of the production center will likely result in the direct elimination of 2,400 workers, with more cuts at other locations accounting for the remaining cuts.
The CEO promised that workers affected by the Nissan layoffs in Japan will be treated with care and offered the opportunity to transfer to other locations if that is a viable solution for them. The company intends to consult the labor union on the matter to ensure things are resolved as quickly and peacefully as possible.
Reports indicate that Nissan is uncertain of what to do with the factory lands and could eventually sell them off, but regardless of the ultimate fate of the land, the Nissan plant shutdowns will move forward as announced. Nissan is expected to cut 22,000 jobs or slash approximately 15% of its workforce in total by 2027.
Nissan Japan’s Manufacturing Changes Will Extend Beyond the Country’s Borders
Nissan’s 2025 announcements regarding plant closure will extend beyond Japan to its international manufacturing centers as well. Two factories in Mexico—one in Morelos and another Cooperation Manufacturing Plant Aguascalientes (COMPAS) plant in Aguascalientes—are expected to be shut by 2027. Employees at these centers will be laid off as well, adding to the sense of disillusionment workers are facing with the automotive industry.
The Japanese auto industry is facing mounting job cuts not only due to declining sales but also the tariffs being pushed by the US. Many businesses have been left with a dented bottom line, and their expenses with regard to tariffs are set to increase further from here on out.
We expect to see Nissan announce the names of other plants that will soon be shut down in the coming months. While the decline of such a big name in the industry is tragic, the plight of the workers is much harder to bear, as many will be left facing a hostile job market with increasingly frequent cuts. The global auto industry has been faced with challenges in production and demand, leaving workers to face the brunt of the fallout.
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