Nissan, the Japanese automaker, has announced plans to eliminate approximately 11,000 jobs worldwide and close seven manufacturing facilities as part of a business restructuring initiative. This decision comes in response to weak sales, particularly in China and the United States, which have negatively impacted earnings. Additionally, a proposed merger with Honda and Mitsubishi fell through in February. The declining sales in China and heavy discounting in the US, Nissan’s two largest markets, have taken a significant toll on the company’s financial performance. The latest job cuts bring the total number of layoffs announced by Nissan in the past year to around 20,000, or 15% of its global workforce. Nissan currently employs about 133,500 people worldwide, with approximately 6,000 employees in Sunderland. Two-thirds of the job reductions will originate from manufacturing, while the remaining one-third will come from sales, administrative jobs, research, and contract staff. In November 2022, Nissan announced 9,000 job cuts as part of a cost-saving effort intended to reduce global production by 20%. In February 2023, negotiations between Nissan and Honda for a multi-billion-dollar merger collapsed due to disagreements between the parties. The proposed merger aimed to create a $60bn motor industry giant, the fourth largest in the world by vehicle sales. Nissan reported an annual loss of 670 billion yen ($4.5bn; £3.4bn) for the previous fiscal year, with US President Donald Trump’s tariffs adding to the company’s financial woes. Ivan Espinosa, Nissan’s new CEO, described the previous financial year as “challenging,” citing rising costs and an “uncertain environment.” He characterized the results as a “wake-up call.” Nissan did not provide a forecast for income in the upcoming year due to the “uncertain nature of US tariff measures.” The company anticipates flat profit in 2023, excluding the impact of tariffs. Last week, Nissan abandoned plans to construct a battery and electric vehicle factory in Japan as part of its cost-cutting measures. Nissan has faced challenges in key markets, including China, where competition from domestic firms such as BYD has led to falling prices. China is now the world’s leading producer of electric vehicles, with some established automakers failing to anticipate the demand for new technology. In the US, inflation and higher interest rates have negatively affected new vehicle sales, although Nissan’s retail sales increased slightly in 2022. However, sales dropped by 12% in China, and also declined in Japan and Europe.