Nissan Reports $4.5 Billion Net Loss, Plans 20,000 Job Cuts Amid Turnaround

Nissan Motor reported a significant net loss of approximately 670 billion yen ($4.5 billion) for the fiscal year ending March 2025, a sharp decline from a net profit the previous year, attributed to sluggish sales in key markets such as the U.S. and China, impairment charges, and intense competition. The company announced cost-saving measures including plans to cut 20,000 jobs as part of its turnaround efforts, but withheld financial forecasts for the upcoming fiscal year due to uncertainties including potential U.S. tariff impacts. Operating profit for the fiscal year was reported at 69.8 billion yen, while the automotive business experienced both negative free cash flow and operating loss. Nissan's financial challenges also negatively impacted Renault Group's first-quarter 2025 net income, reflecting impairments and restructuring costs associated with Nissan's recovery initiatives. The automaker is prioritizing strategies to mitigate tariff risks by optimizing local production capacity and supplier localization, though the outlook remains uncertain. These developments mark a critical period for Nissan's new CEO as the company attempts to navigate a challenging global automotive market and execute its recovery plan.