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Japan’s Nissan reported a net loss of $4.5 billion for the fiscal year ending March 2025 and announced plans to cut 15% of its global workforce, warning of ongoing uncertainty due to potential U.S. tariffs.
The struggling automaker, which dropped a proposed merger with Honda earlier this year, is reducing production as part of a costly turnaround strategy.
“Nissan must urgently focus on improving itself,” CEO Ivan Espinosa said. “We face high operational costs, and the volatile global market is making it harder to plan and invest effectively.”
This is the company's worst annual performance since 1999–2000, when it posted a record net loss of 684 billion yen ($4.61 billion today) and entered a difficult alliance with French carmaker Renault.
Renault, which owns nearly 36% of Nissan, said it expects to take a €2.2 billion ($2.4 billion) loss in the first quarter due to Nissan’s restructuring. The company did not release a profit forecast for 2025–2026, citing tariff-related uncertainty. It only projected total sales of 12.5 trillion yen. “The unpredictable nature of U.S. tariffs makes it impossible for us to provide reliable profit estimates,” Espinosa added. “We wouldn't be taking such steps unless they were essential for survival.”
As part of its recovery efforts, Nissan will reduce the number of production plants from 17 to 10 by 2027. The company also aims to boost its performance in China with new energy vehicle launches, where it faces tough competition from local electric vehicle brands.
Talks of a potential merger with Honda fell apart in February after Honda proposed making Nissan a subsidiary. Still, Espinosa said the company remains open to partnerships, including with Honda.
Nissan has dealt with a series of setbacks in recent years, including the 2018 arrest of former CEO Carlos Ghosn, who later escaped Japan in a box used for audio equipment. Espinosa was appointed CEO in March after the company’s stock lost nearly 40% of its value over the past year.
Credit rating agencies have downgraded Nissan’s debt to junk status, with Moody’s citing poor profitability and an aging model lineup. Earlier this month, Nissan also scrapped a $1 billion battery plant project in southern Japan, citing a challenging business environment.
According to Bloomberg Intelligence, Nissan may be the most vulnerable among Japanese automakers to the U.S. administration’s 25% tariffs on imported vehicles.
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