Nissan has confirmed it will shut seven factories and cut 20,000 jobs globally in a bid to slash costs.
The Japanese car maker has said it will cut 11,000 more jobs than originally planned, having announced in November that it would axe 9,000 roles in a restructuring.
On Tuesday, the group said its major overhaul will see it reduce its number of plants from 17 to 10 by 2027.
The changes are expected to affect around 15% of the company’s workforce but it is not known where jobs will be cut across its global operations.
Nissan currently employs around 6,000 people at its factory in Sunderland.
Last month, Alan Johnson, senior vice president for manufacturing for Nissan’s Africa, Middle East, India, Europe and Oceania operation, cautioned that the UK was “not a competitive place” to build cars as he called for Government support.
The company is seeking to reduce its production capacity after a pair of recent profit downgrades.
The firm has been impacted by stalling sales in China and the US.
The company said the shake-up will help “create a leaner, more resilient business” as it also cautioned over the impact of US President Donald Trump’s plans for 25% tariffs on cars imported into the US.
The vast majority of cars made in the UK will be subject to a 10% tariff after the UK-US trade deal agreed last week.
Nissan has said it is targeting 250 billion yen (£1.28bn) worth of cost savings against the previous financial year.
This will be secured through the closure of plants, work shift adjustments and reduced capital spending, including through cancellation of a planned lithium battery plant in Kyushu for its electric vehicles.
Nissan president and chief executive Ivan Espinosa said: “In the face of challenging full-year 2024 performance and rising variable costs compounded by an uncertain environment, we must prioritise self-improvement with greater urgency and speed, aiming for profitability that relies less on volume.
“As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery.
“Re:Nissan is an action-based recovery plan clearly outlines what we need to do now.”
