Nissan to Close Factories and Cut Jobs After Dire Financial Loss

Major automaker Nissan announced on May 13 a net loss of ¥671 billion for the fiscal year ended in March 2025 in an about-face to its performance the previous year when it posted a profit of ¥427 billion. The plunge approaches the ¥684 billion loss the company suffered in the fiscal year ended in March 2000. Nissan’s consolidated net revenue remained flat year-over-year at ¥12.6 trillion.

Delayed launches of new models contributing to reduced sales in China and the United States, key markets for Nissan, and a ¥500 billion decrease in the value of its plants and other global assets were leading factors in the car manufacturer’s poor performance.

Nissan has stepped up cost-cutting measures in response to its dire financial situation. It plans to reduce its production facilities from 17 factories to 10 by the end of March 2027, and will slash 20,000 jobs, representing 15% of its total workforce. The company is aiming to save ¥500 billion in fixed and variable assets.

The sweeping tariffs imposed by the administration of US President Donald Trump further raise the bar for Nissan, which has postponed making a forecast for the current fiscal year ending March 2026 as it ascertains the impact of the duties.

(Translated from Japanese. Banner photo: Nissan President and CEO Ivan Espinosa announces the company’s financial results on May 13, 2025. © Reuters/Kim Kyung-Hoon.)