Nissan to Reduce Size of London Design Centre and Shut Down International Sites in Cost-Saving Measures
Nissan Announces Global Restructuring, Aims for Profitability by 2026
In a significant move, Japanese automaker Nissan has announced a global restructuring plan, aiming to achieve positive operating profitability and free cash flow in its automotive business by the fiscal year 2026.
The restructuring includes downsizing design operations worldwide, with Nissan's London Design Studio set to undergo changes as part of a cost-saving plan. The hub, which celebrated its 22nd anniversary in January 2023, will continue to serve as the backbone for the Africa, Middle East, India, Europe, and Oceania regions, in collaboration with Renault. However, the exact number of jobs that could be affected remains undisclosed.
In a related development, Nissan has decided to close design centres in California and Sao Paulo, and reportedly reduce the workforce at the Paddington design studio in London. The consolidation of these centres will allow Nissan to better align resources and embed technology at the core of the design process.
The UK government has pledged a £1bn loan to safeguard jobs at Nissan's Sunderland site, where the production home of Nissan will continue to operate. The latter two new Leaf and Juke EVs, along with the Micra, are the three new cars Nissan hopes will turn around its fortunes.
The London Design Studio, working together with Renault, is responsible for planning regions excluding Africa, Asia, the Middle East, and Oceania, implying it covers primarily Europe and the Americas outside those excluded areas. The Design Centre in London has been a key part of Nissan's past success in Europe, creating iconic cars such as the Pathfinder, original Juke, and new Micra EV.
Alfonso Albaisa, Nissan's corporate executive of Global Design, said the restructuring will allow for faster, smarter, and more connected design solutions. The restructuring will be completed by the end of fiscal 2025, following a challenging period for the automaker. Nissan posted a record loss of around £3.8bn for the 2024-25 financial year.
Despite these challenges, Nissan's Re:Nissan Plan remains focused on driving the company towards a sustainable and profitable future. The plan, which was first announced in 2020, aims to transform Nissan into a more agile and competitive company in the rapidly evolving automotive industry.
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