Following a disappointing Q1 2025, which saw Japanese carmaker Nissan report a $4.55 billion loss and a 25% drop in its shares, the company is set to lay off 20,000 employees globally, resulting in a 15% reduction in headcount.

The company also intends to shut seven plants down by 2027, reducing the total number from 17 to 10. This decision is expected to save JPY 500 billion ($3.37 billion) a year. In addition to closing plants, Nissan plans to restructure its supply chain to source more parts from fewer suppliers in order to save money.

The reason for Nissan's failure in Q1 2025 is attributed to a decrease in sales in Europe, the USA, China, and Japan. The consequences of the trade war unleashed by Donald Trump are also a major factor.