Nissan has announced plans to cut around 250 jobs at its Sunderland factory, the UK’s largest car manufacturing site, as the company grapples with falling profits and weaker-than-expected demand for electric vehicles (EVs).
The Japanese carmaker said the job reductions, around 4% of the plant’s 6,000-strong workforce, will be carried out through a voluntary redundancy scheme. The cuts will affect office staff and shop floor supervisors, but not manufacturing workers.
The Sunderland factory, opened in 1986 and known for producing models like the Nissan Bluebird, remains the company’s only manufacturing site in Europe and is also the largest employer in the city.
The decision to reduce headcount comes as part of a broader cost-cutting drive. It is aiming to save ¥400bn (£2bn) following a sharp decline in profits, driven largely by sluggish EV sales in Europe, falling demand in China, price competition in the US, and rising costs for energy and labour.
In its most recent financial results, Nissan reported an 88% drop in annual profits, its worst performance in 25 years. In response, the company has unveiled a global restructuring plan that could see up to 20,000 jobs cut across its 133,500-strong workforce worldwide.
A Nissan spokesperson confirmed the job cuts in Sunderland and said consultations have begun with affected staff.
“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 the plant’s efficiency as we aim to become a leaner, more resilient business.”
Despite the cutbacks, the company reaffirmed its commitment to its UK operations.
In 2023, Nissan pledged £2bn in upgrades to the Sunderland plant to support its transition to EV production, as part of its goal to phase out petrol and diesel vehicles by 2030.
The plant is set to begin production of the next-generation electric Leaf later this year, with an electric version of the Juke model scheduled for launch in 2026.
“Our Sunderland plant remains at the forefront of our electrification strategy,” the spokesperson added.
