Nissan to Close Two Design Studios, Slash 20,000 Jobs in Global Cost-Cutting Plan

• Nissan to consolidate design network, closing studios in San Diego and São Paulo by March 2026.

• Automaker aims to cut 20,000 jobs and save nearly $5B CAD across fixed and variable costs.

• Cost czar Tomita oversees 1,600 cost-saving measures, including supply chain and vehicle development changes.

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Nissan Motor Co. will close two of its international design studios and eliminate 20,000 jobs globally as part of a multi-year restructuring plan to reduce fixed and variable costs by a combined ¥500 billion (approximately $4.7 billion CAD) by the end of fiscal year 2026.

The company confirmed that its design operations in San Diego, California (Nissan Design America), and São Paulo, Brazil (Nissan Design Latin America), will be shuttered. Downsizing efforts will also affect creative teams in the United Kingdom and Japan. The Atsugi design facility in Japan will become the lead studio for global markets, while Studio Six in Los Angeles will take over U.S.-focused design responsibilities for Nissan and Infiniti models.

Nissan’s design network will be streamlined into five core locations by March 2026. The London design centre will continue supporting the Africa, Middle East, India, Europe, and Oceania (AMIEO) region and collaborate with Renault. Design centres in Shanghai and Tokyo will remain, with the former dedicated to the Chinese market and the latter focusing on brand and lifestyle projects.

The studio consolidation is part of a far-reaching cost-reduction initiative led by CEO Ivan Espinosa, who has overseen the development of a multi-tiered strategy with the goal of improving profitability and simplifying operations.

Central to this effort is the appointment of Tatsuzo Tomita as head of Nissan’s total delivered cost transformation. Since April, Tomita has led a task force of 3,000 employees that has produced over 4,000 cost-saving proposals. Of these, 1,600 have been approved for implementation, with initial rollouts scheduled before the end of 2025.

Tomita outlined various strategies during a September 17 briefing at Nissan’s global headquarters in Yokohama. Examples include reducing the number of headrest components stored in supplier warehouses, simplifying carpet and seat textile specifications, and shifting to standardized headlamp parts. Additional savings will come from changes to logistics, such as pre-assembling components to lower transportation costs.

The company is also reassessing its supplier base, including increasing its use of Chinese suppliers, who offer cost efficiencies by producing parts at scale. These moves are expected to have a significant impact on Nissan’s existing supplier network, particularly those producing low-volume, specialized components.

Nissan aims to cut parts complexity across its vehicles by up to 70% and reduce the number of vehicle platforms from 13 to seven by the mid-2030s. In vehicle development, lead times for new models are expected to drop to 37 months, with derivative models taking just 30 months, down from a staggering 52 and 50 months, respectively.

Tomita stressed that the cost-cutting program does not equate to decontenting. He said any ideas affecting customer-facing features are reviewed for market impact and consumer expectations before being approved. He added that supplier collaboration is critical, with 80% of the proposals involving suppliers directly.

Nissan’s cost control efforts come after years of pursuing volume-driven growth, which led to a proliferation of model variants and increased internal complexity. The company is now pivoting to a leaner, more agile structure, using collaborative planning methods such as the traditional Japanese “obeya” (big room) approach to break down silos and foster integrated decision-making across departments.