Nissan (NSANY, Financials) is launching a sweeping restructuring plan to address years of declining sales and chronic overcapacity, according to new CEO Ivan Espinosa. In an interview with CNBC on Wednesday, Espinosa said the company's near-term focus is internal: We are convinced that the plan is enough and robust, he said, pointing to a multi-year effort that includes deep cost reductions and operational resizing.

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The plandubbed Re:Nissancalls for the elimination of 20,000 jobs and the closure of seven out of 17 global manufacturing plants by March 2028. Espinosa, who took over in April, warned the problems at the automaker were structural and long-running. This is a problem that did not start two years ago, he said, adding that Nissan's aggressive expansion targets from nearly a decade ago were never met.

Nissan had once aimed for 8 million units in annual sales, but peaked at 5.6 million in 2016 and is now tracking around 3.3 million to 3.4 million units per year. Espinosa said the company would reduce both fixed and variable costs to reset its operations. The Japanese automaker also continues to face stiff global competition from Chinese rivals and pressure from a slow transition to electric vehicles.

Compounding the challenge are new U.S. tariffs, including a 50% levy on global steel and aluminum, introduced by President Donald Trump and expected to tighten further when a temporary reprieve expires in July.

A proposed tie-up with Honda (HMC, Financials) was also scrapped earlier this year, ending hopes of creating what would have been the world's third-largest automaker by volume.

Nissan's Tokyo-listed shares have fallen 24% so far in 2025. The company says it is now focused on aligning output with real demand and improving profitability through reduced overhead and better capital discipline.

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