Nissan to cut 11K more jobs, shut down some plants. What to know in Tennessee

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  • May 13, 2025

This story has been updated with comment from Nissan and more details

Nissan announced that it's cutting 11,000 jobs and closing seven of its manufacturing plants. This news comes after the Japanese automaker reported a devastating 88% drop in operating profit year-over-year.

Chief Financial Officer Jeremie Papin said the company expects a 200 billion yen ($1,352,111,000) operating loss in the first quarter, according to Reuters. Several factors including past leadership, weakening demand, and a failed merger attempt have all contributed to Nissan's dire straits.

Nissan announced 9,000 job cuts in 2024

In 2024, Nissan announced that it would be cutting 20% of its global manufacturing capacity and 9,000 jobs, as reported by Reuters . Now, the total planned workforce reduction number stands at 20,000 between 2024 and 2027 as Nissan more than doubles job cuts in response to a nightmarish fiscal year.

Nissan to cut 11K more jobs, shut down some plants. What to know in Tennessee

Weak sales in China and the United States contributed to Nissan's initial workforce reduction announcement. Former CEO Makoto Uchida also admitted that the company misread demand for hybrids in America during a press conference.

Why is Nissan struggling?

Nissan is in deep trouble if the company can't significantly reduce operating expenses and boost sales soon. How did Tennessee's favorite automotive brand end up in such a tight spot?

Former Chairman Carlos Ghosn focused too heavily on sales volume and not enough on keeping the company's portfolio modern and competitive, said analysts . As a result, Nissan is losing sales to rival automakers. CEO Ivan Espinosa called full-year financial results "a wake-up call" during a press conference , Reuters reported.

Espinosa went on to say "our fixed costs are higher than our current revenue can support. FY2025 is a year of transition," echoing the sentiments of the Chief Financial Officer after a grim fiscal year 2024 review.

The current market presents several challenges such as tariffs , weakening sales due to demand, and competition from popular Chinese automakers. Merger talks with Honda fell through , causing some serious setbacks for the company.

Nissan is experiencing a perfect storm of issues causing the automaker to struggle with sales and operating profit. So how (if at all) does this affect Tennesseans?

Is Nissan closing its Tennessee plant?

The automaker's Smyrna plant currently employs over 5,700 workers.

"Our manufacturing operations in Tennessee and Mississippi are strategically important to the company’s future in this crucial market," Nissan Americas Corporate Communications Director Kyle Bazemore said to The Tennessean in the wake of the job cuts announcement.

Nissan Smyrna produces popular models like the Nissan Leaf, Pathfinder, Murano, Rogue, and Infiniti QX60. The company employs around 21,000 workers in the United States. Nissan has not specified which plants will be closing.

The company is looking to maximize production at the Smyrna plant (its largest American production plant) as reported by CNBC on April 16. So, there's no telling where the Smyrna plant stands in Nissan's cost savings efforts, but previous plans to ramp up production could be a positive sign for workers.

How will new cost savings plan affect Nissan and its customers?

Though Nissan didn't specify which plants would be closing, there are a few things that are clear about the company's path forward. Nearly 20,000 Nissan employees are at risk of losing their jobs and seven plants could shut down in the near future. Nissan also plans to "reduce the complexity of parts by 70%" and "reduce the number of manufacturing plants from 17 to 10", according to the press conference .

Nissan to cut 11K more jobs, shut down some plants. What to know in Tennessee

The way Nissan vehicles are manufactured, where they are assembled, and who assembles them is about to change drastically. CEO Ivan Espinosa's new cost savings goal is an attempt to keep the brand afloat amidst one of the most trying markets automakers have seen in years.

President Donald Trump recently offered car manufacturers a reprieve from tariffs in the form of a new proclamation. On the other hand, future trade relations with China and other major trade partners remain unpredictable.

− The Tennessean reporter Hadley Hitson and Reuters contributed to this story

This article originally appeared on Nashville Tennessean: Nissan shutting down plants, cutting jobs. Will Tennessee be impacted?