To drive a leaner, smarter business by 2026
In a bold move to reshape its global operations and return to long-term profitability, Nissan Motor has launched Re:Nissan, a comprehensive recovery plan designed to overhaul the company’s cost structure, sharpen its market focus, and accelerate product development.
With new leadership and a renewed sense of urgency, the Japanese automaker is doubling on decisive actions to build a leaner, more adaptable business model that can respond swiftly to market volatility and shifting consumer demands.
The initiative is critical for Nissan, following a turbulent fiscal year with rising costs and uncertain global conditions. President and CEO Ivan Espinosa outlined the company’s fresh direction, aimed squarely at transforming internal performance and realigning Nissan’s long-term strategy for sustained success.
Speaking on the launch of Re:Nissan on May 13, 2025, Ivan Espinosa did not mince words. “In the face of challenging FY24 performance and rising variable costs, compounded by an uncertain environment, we must prioritise self-improvement with greater urgency and speed,” said Espinosa. “As new management, we are reassessing our targets and actively seeking every opportunity to secure a strong recovery. Re:Nissan clearly outlines what we need to do now.”
The company targets a return to profitability by fiscal year 2026, underpinned by aggressive cost-cutting measures, product and market restructuring, and a deep-rooted cultural transformation within its workforce.
Reducing costs
At the heart of the Re:Nissan strategy is a sweeping effort to reduce variable and fixed costs by a combined ¥500 billion compared to FY24. This financial overhaul will provide the framework for stable operating profit and positive free cash flow by 2026.
To achieve half of this target through variable cost savings, Nissan is fast-tracking efficiencies in engineering and procurement. A newly formed transformation office, staffed by 300 cross-functional experts and led by the Chief TdC Officer, will steer this mission with the authority to make immediate cost-related decisions.
As part of this push, Nissan will temporarily pause development of advanced vehicle projects scheduled beyond FY26. This decision allows for the redeployment of 3,000 personnel to support cost-cutting activities across the business. Thanks to a newly implemented shortened development cycle, Nissan assures no delays in launching upcoming models.
Nissan’s supply chain is also undergoing a major shake-up. The automaker plans to reduce supplier numbers while increasing volume per partner, enabling greater efficiency and eliminating legacy practices that no longer serve the company’s strategic goals.
Collaborations with alliance partners such as Renault and Mitsubishi Motors will be critical in this process. Notably, Nissan and Mitsubishi will jointly develop a new battery electric vehicle based on the next-generation LEAF, targeted for the North American market. Nissan’s collaboration with Honda will continue, focusing on vehicle intelligence and electrification.
The remaining ¥250 billion in cost reductions will come from fixed cost savings. Nissan plans to consolidate its global vehicle production facilities from 17 to 10 by fiscal year 2027. Powertrain plants will be streamlined, while capital investments will be reviewed to eliminate unnecessary expenditure.
One of the first actions taken under this policy includes cancelling a planned Lithium Iron Phosphate battery plant in Kyushu. Nissan is also introducing reforms in work shifts, accelerating job restructuring, and adjusting plant operations to reflect the new leaner structure.
Resizing global workforce
Another significant component of the recovery plan involves resizing Nissan’s global workforce. By fiscal year 2027, the company aims to cut 20,000 jobs, including the previously announced 9,000.
These reductions will affect direct and indirect roles in manufacturing, research and development, and general administration. Nissan will also expand its shared service functions and streamline marketing to further reduce SG&A costs.
Speed and simplicity are becoming central themes in Nissan’s vehicle development. Under the Re:Nissan plan, engineering complexity will be significantly reduced, with the company aiming to cut average hourly engineering costs by 20%.
The number of vehicle platforms will shrink from 13 to 7 by 2035. Parts complexity will be reduced by 70%, helping to cut lead times on new vehicles. The first vehicle under the new process will take 37 months to develop, while subsequent family models will follow in 30 months.
Nissan already applies these principles to several high-profile launches, including the new-generation Nissan Skyline, a global C-segment SUV, and a premium INFINITI compact SUV.
Nissan is also adopting a sharper, region-specific approach to its markets. Rather than a one-size-fits-all strategy, the company is customising its offerings to match local customers’ needs and preferences better.
In the United States, a greater focus on hybrids and revitalisation of the INFINITI brand through closer integration with Nissan will occur. In Japan, model expansion will help reinforce the brand’s domestic presence.
China will remain a hub for domestic sales of new energy vehicles (NEVs) and exports to global markets. Meanwhile, in Europe, Nissan will focus on B- and C-segment SUVs, backed by its partnership with Renault and support from Chinese manufacturing partners.
In the Middle East, large SUVs will drive Nissan’s product focus, while Mexico will maintain its key role as the company’s profit-generating export base.
Central to the Re:Nissan plan is a redefined product strategy, emphasising models representing the company’s core identity. Nissan aims to strengthen its global presence through vehicles that build brand equity, deliver innovation, and drive volume in key segments.
The strategy involves concentrating internal resources on developing signature nameplates that reflect the brand’s legacy while embracing future electrification, connectivity, and design trends.
Image: In the Middle East, large SUVs will drive Nissan’s product focus. Credit: Nissan
While the road ahead is complex, the Re:Nissan plan lays out a detailed and actionable roadmap for recovery. The timeline is ambitious, but the leadership team is confident that its structured approach and clearly defined goals will guide the company back to profitability.
Espinosa concluded by reinforcing the unity of purpose across the organisation. “All employees are committed to working together as a team to implement this plan, to return to profitability by fiscal year 2026. We are focused, determined, and ready to act.”
As the automotive industry faces unprecedented transformation, Nissan’s bold restructuring strategy signals a clear intent: to not only weather the storm but emerge as a stronger, more focused and more competitive global player.
Image: In the Middle East, large SUVs will drive Nissan’s product focus. Credit: Nissan
