Nissan to Cut Hundreds of Jobs at Sunderland Factory Amid Slower EV Demand

Strategic Insights -

Nissan's largest car factory in the UK, located in Sunderland, is set to undergo a significant restructuring as the company looks to boost profits. The Japanese manufacturer plans to cut around 250 jobs, roughly 4% of its 6,000-strong workforce, through a voluntary redundancy scheme. This move comes as Nissan seeks to cut ¥400bn (£2bn) of costs following a significant slump in profits, attributed to slower-than-expected uptake of electric vehicles (EVs) in Europe. The factory, which was first opened in 1986, is the largest car factory in Britain and Nissan's only factory in Europe, employing thousands of workers in the region.

Key Takeaways:

  • Nissan plans to cut around 250 jobs, roughly 4% of its 6,000-strong workforce at the Sunderland factory, through a voluntary redundancy scheme.
  • The job cuts will mainly affect office staff and shop floor supervisors, while manufacturing workers will be unaffected.
  • The Sunderland factory, which was first opened in 1986, is the largest car factory in Britain and Nissan's only factory in Europe.
  • Nissan's profits slumped due to slower-than-expected uptake of EVs in Europe and sales slump in China and pricing pressures in the US.
  • The company outlined a far-reaching turnaround plan that is expected to see it lay off 20,000 of its 133,500 global employees.
  • Nissan will continue to invest in its Sunderland facility, with plans to start producing its fully electric Leaf model out of the factory this year and an electric version of its Juke car in 2026.

Statistics:

  • 250 jobs to be cut at the Sunderland factory, roughly 4% of the 6,000-strong workforce.
  • ¥400bn (£2bn) of costs to be cut by Nissan to boost profits.
  • Global employee lay-offs expected: 20,000.
  • Profits reported an 88% drop for the full year 2025, the company's worst set of financial results in 25 years.
  • Energy prices and labor costs have further eroded Nissan's profits, which are affected by the slow uptake of EVs in Europe.

Sources:

  • "Nissan plans to cut hundreds of jobs at Sunderland factory amid slow demand for electric vehicles". The Guardian (2023)
  • Nissan's official statement from The Financial Times (2023)
  • Automobilwoche (2023)
  • Financial Times (2023)