Nissan announces job cuts at UK factory
Struggling car manufacturer Nissan is cutting jobs at its Sunderland plant as it tries to improve 'efficiency'. The Japanese car maker, which posted a historic £3.8billion net loss in the last year, has confirmed to This is Money it will axe 250 of its 6,000 workforce at the North East vehicle factory.
Despite the recent good news that production of the new Nissan Leaf and forthcoming Juke EV will save the Sunderland plant for being one of seven global factories shuttered to £1.3bn in operating costs, it has confirmed it will still lose hundreds of workers as part of a 'leaner' business strategy. A spokesperson said that manufacturing staff won't be affected. Instead the 'voluntary leave scheme' had been opened to on-site shop floor and office staff.
In May, Nissan announced its poor 2024-25 financial results, with huge losses off the back of a crash in demand in its two largest markets, the US and China . As a result, new chief executive Ivan Espinosa simultaneously announced the £1.3bn 'Re:Nissan action-based recovery plan' to haul the company out of the red.
A spokesperson for Nissan told us: 'In order to support future competitiveness, this week we are beginning discussions with some of our team in Sunderland about the opportunity to voluntarily leave Nissan, with support from the company. 'This will support the plant's efficiency as we aim to become a leaner, more resilient business.'
Nissan recently reaffirmed that the Sunderland plant ' remained at the forefront of Nissan's electrification strategy ' and will provide European production for its new line-up of EVs arriving before 2026. During a conference last month, Nissan president and chief executive Espinosa said: 'In Europe, we will strengthen our presence by assembling more electric models in Sunderland.'
Nissan is hoping to raise £5.2billion to stay afloat. The new Leaf is coming later this year, a new EV Juke is arriving next year and the new e-POWER system is also coming to Qashqai soon.
The all-new Leaf will be the first of Nissan's revised electric car offerings to be built at Sunderland. The completely overhauled version of the pioneering, first true mass-market EV is arguably Nissan's best bet at recapturing the electric car market now dominated by cheap Chinese EVs and some strong competition from Renault, Kia and Hyundai.
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