Around 250 roles are expected to be lost at the Nissan factory in Sunderland as the automotive giant implements a substantial global savings scheme. The firm has been grappling with significant challenges on a worldwide scale in recent months as it strives to secure billions for its survival.
Office personnel and some floor supervisors are being offered packages to voluntarily exit the company. The 're-cap' programme will not impact manufacturing staff at Sunderland, where around 6,000 individuals are employed.
Earlier this year, new Nissan CEO Ivan Espinosa announced severe cost-cutting measures across Nissan's international business, including the elimination of 20,000 jobs globally and the closure of seven factories over the next three years. It is hoped that these reductions, which follow a failed merger attempt with Honda, would save the company more than £2bn.
The news arrives as Nissan reported another decline in production and sales figures last month, including a 38% decrease in the number of vehicles manufactured in the º£½ÇÊÓƵ during May to just under 16,500, compared with the same period last year. Worldwide factory numbers fell 16.5% over the same period to 229,645.
Meanwhile, European sales were down 2.6% to 24,224 and global sales dropped 6% to 256,159. In addition, the company announced some changes in senior management, including the departure of its global chief information officer, reports .
Nissan's Sunderland site has long been regarded as one of the manufacturer's top-performing facilities, having secured substantial investment, including a commitment to produce new electric models. However, the plant has experienced challenges, such as the elimination of a production shift without job losses.
Nissan executive Alan Johnson has cautioned that the º£½ÇÊÓƵ is "not a competitive place to be building cars" due to high energy costs and other factors.
The business has faced global pressure due to various challenges, including trade tariffs and rising competition from Chinese manufacturers. However, there have been encouraging local developments, such as the creation of essential supplier factories, Jatco and AESC, near the Sunderland plant, both of which have received financial support from the government.
This underscores the significance of the Nissan facility to the regional and national economy. The company recently unveiled the new LEAF model, which will begin production at the Sunderland plant later this year.
A spokesperson for Nissan commented: "Our Sunderland Plant remains at the forefront of our electrification strategy, with the new LEAF coming later this year, a new EV Juke arriving next year and our new e-POWER system coming to Qashqai soon. 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 plant's efficiency as we aim to become a leaner, more resilient, business."
In the wider automotive industry, Nissan is not the only company grappling with challenging market conditions. Latest statistics indicate that the production of new cars and commercial vehicles in the º£½ÇÊÓƵ has dropped for the fifth month running as of May.
According to the Society of Motor Manufacturers and Traders (SMMT), production declined by one-third in comparison to last year, marking it the worst May performance since 1949, discounting the exceptional year of 2020 when Covid restrictions resulted in closed factories or severely limited operations.
So far this year, output has diminished nearly 13% from 2024 levels, amounting to just 348,226 units - a low unseen since 1953. The SMMT attributes the slump primarily to continued model changeovers, organisational restructuring and the repercussions of US tariffs.
