Nissan to cut 250 jobs at major UK car plant as electric vehicle sales flop

Hundreds of workers at Nissan's Sunderland factory are bracing themselves forjob losses as the car giant grapples with dwindling demand for electric vehicles (EVs) and plummeting profits.

The Japanese car manufacturer has confirmed plans to axe approximately 250 jobs at the North East plant, which equates to around four percent of its 6,000-strong workforce, through a voluntary redundancy scheme.

Office staff and shop floor supervisors will bear the brunt of the job cuts, while production line workers will be unaffected, according to Nissan.

This comes as a blow to Britain's largest car plant, a stalwart of the UK automotive industry since its inauguration in 1986, famously known for producing the Nissan Bluebird.

Today, it stands as Nissan's sole manufacturingsite in Europe and Sunderland's biggest employer.

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These job cuts form part of a significant cost-saving initiative as the company strives to recover ¥400bn (£2bn) following a harsh year that saw EV sales stumble across Europe, reports the Express.

Nissan has invested billions in its ambition to become a leading EV manufacturer, including a hefty £2bn investment to revamp its Sunderland site for electric car production, with the goal of phasing out petrol and diesel models by 2030.

However, this gamble has encountered a hitch. Interest in EVs hasn't grown as anticipated, impacting Nissan's bottom line.

Weak demand in China, pricing wars in the US, and escalating costs for energy and labour have further dented profits.

Nissan has reported a catastrophic 88 percent drop in profits for the full year 2025, its poorest performance in 25 years.

In an attempt to bounce back, Nissan is embarking on a major restructuring effort that will see about 20,000 jobs slashed from its global workforce of 133,500.

A spokesperson for Nissan commented:

"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."

The move signals increasing strain on established car manufacturers as they navigate the rocky transition to electric vehicles and grapple with the challenge of balancing long-term investments with immediate survival.