Nissan to Close Seven of Its 17 Plants Worldwide by 2027
Nissan posted an annual net loss of $6.4 billion CAD on Tuesday while saying it plans to cut 15 percent of its global workforce and warning about the possible impact of U.S. tariffs.
The heavily indebted carmaker, whose mooted merger with Honda collapsed this year, is slashing production as part of its expensive business turnaround plan.
- Also: Nissan to Cut 10,000 Additional Jobs, Japanese Media Report
- Also: Nissan Revises U.S. Production Cuts After Tariffs
"Nissan must prioritize self-improvement with greater urgency and speed," new CEO Ivan Espinosa told reporters. "The reality is clear. We have a very high cost structure. To complicate matters further, the global market environment is volatile and unpredictable, making planning and investment increasingly challenging."
Nissan reported a net loss of 671 billion yen (approx. $6.4 billion CAD) for the financial year ending on March 31, 2025. Its worst ever full-year net loss was 684 billion yen in 1999-2000, during a crisis that birthed its rocky partnership with French automaker Renault.
Nissan did not issue a net profit forecast for 2025-2026, only saying that it expects to see sales of 12.5 trillion yen.
"The uncertain nature of U.S. tariff measures makes it difficult for us to rationally estimate our full-year forecast for operating profit and net profit, and therefore we have left those figures unspecified," Espinosa said.
Nissan's shares closed three percent higher Tuesday after reports, later confirmed by the company, that it planned to slash a total of 20,000 jobs worldwide.
"We wouldn't be doing this if it was not necessary to survive," Espinosa said of the cuts.
Nissan, as part of recovery efforts, also said it would "consolidate its vehicle production plants from 17 to 10 by fiscal year 2027".
A merger with Japanese rival Honda had been seen as a potential lifeline but talks collapsed in February when the latter proposed making Nissan a subsidiary. Espinosa said Tuesday that Nissan remained "open to collaborating with multiple partners", including Honda.
Ratings agencies have downgraded the firm to junk, with Moody's citing its "weak profitability" and "ageing model portfolio." And this month Nissan shelved plans, only recently agreed, to build a $1 billion battery plant in southern Japan owing to the tough "business environment."
