Nissan Motor Co. is offering early retirement to employees in administrative positions in Japan from July to August. This is the first such offer since 2007.
The move is part of Nissan’s plan to cut 20,000 jobs worldwide as it undertakes restructuring efforts. The company wants to reduce administrative expenses amid a challenging business environment. Factors include tariff measures and new economic pressures.
Nissan will provide extra retirement allowances and job-placement assistance to those who choose early retirement. The early retirement program will include a wide range of job categories, such as sales and accounting. It will not include development, production, and design divisions.
The program targets full-time employees aged 45 to 64 who have worked at Nissan for at least five years. It also covers those who have been rehired after reaching retirement age.
Early retirement program introduced
Nissan did not give the exact number of employees who will be offered early retirement. It plans to share more details with employees by mid-June. The automaker reported a net loss of ¥670.8 billion in its financial results for the fiscal year ending March 2025.
Last Tuesday, Nissan announced a new business restructuring plan called “Re:Nissan.” The plan aims to reduce the workforce by about 20,000 people, which is 15% of its global workforce. The reductions will mainly affect manufacturing (65%), administrative (18%), and research and development divisions (17%). Nissan wants to reduce fixed costs, including personnel expenses, by ¥250 billion by fiscal 2026.
CEO Ivan Espinosa said the company’s fixed costs are higher than its current revenue. He said these drastic measures are needed to ensure Nissan’s sustainability. Nissan also plans to cut seven plants worldwide by fiscal 2027.
A draft plan shows potential closures include the Oppama plant in Yokosuka and the Shonan plant in Hiratsuka, both in Kanagawa Prefecture. The company has not commented on these closures yet but said it is committed to being transparent with stakeholders.
