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Nissan Cost-Cutting Overhaul Forces Shutdown of Design Studios

Nissan Cost-Cutting Overhaul Forces Shutdown of Design Studios

Big changes are coming at Nissan. In a move that shows just how tough the road ahead has become, the Japanese automaker is shutting down some of its design studios and reshaping the way it creates cars. It’s all part of the bold “Re:Nissan” turnaround plan — a strategy aimed at cutting costs, simplifying processes, and getting the company back on track.

Saying Goodbye to San Diego and São Paulo

According to Nissan, two design centers will soon close: Nissan Design America in San Diego and Nissan Design Latin America in São Paulo. Meanwhile, the company will slim down its creative operations in London and Japan.

That doesn’t mean Nissan is giving up on design — far from it. Instead, the brand is regrouping its creative forces into five global hubs that it believes will keep ideas flowing while making the whole process faster and more efficient.

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Five Hubs for the Future

Here’s how the new setup will look:

  • Atsugi, Japan will lead global design efforts.

  • Los Angeles (Studio Six) will become the heart of U.S. design for Nissan and Infiniti.

  • London will continue to support the Africa, Middle East, India, Europe, and Oceania regions, working closely with partner Renault.

  • Shanghai will remain focused on vehicles for the Chinese market.

  • Tokyo’s Creative Box will keep exploring lifestyle and brand-focused projects.

The idea, Nissan says, is to encourage quicker decisions, smoother collaboration, and faster responses to a car market that’s changing almost daily.

A Costly Reset

Of course, behind the scenes, this is also about money. Nissan has been very clear: it’s in the middle of a massive cost-cutting drive. Globally, around 20,000 jobs are expected to be cut as part of the “Re:Nissan” strategy. While the company hasn’t said how many designers will be affected, it’s safe to say this reshuffle won’t be painless.

Nissan is also planning to save 60 billion yen (about $409 million) by simplifying its design processes and cutting down parts complexity by as much as 70%. It’s a huge change, but one the automaker insists is necessary.

Nissan Cost-Cutting Overhaul Forces Shutdown of Design Studios ArabGT

Faster Cars, Less Time

Interestingly, this restructuring isn’t just about trimming fat. Nissan says it wants to build cars faster than ever before. A brand-new model could now be ready in as little as 37 months, which is more than a year quicker than the old process. Variants and derivatives might be turned around in just 30 months, nearly two years faster than before. The automaker also plans to shrink its number of vehicle platforms from 13 down to 7 by the mid-2030s, a step that should simplify engineering and reduce costs even further.

Tough Decisions, Long-Term Goals

Closing studios and cutting jobs is never easy, and Nissan knows it. But as CEO Ivan Espinosa explained, these tough choices are meant to give the company the breathing room it needs to survive and thrive. The hope is that by concentrating its design power and streamlining operations, Nissan will emerge leaner, quicker, and more competitive in the years to come.

It won’t be an easy journey, but one thing is certain: Nissan is betting that the sacrifices of today will secure the creativity and profitability of tomorrow.

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