Nissan Takes a Multi-Billion Dollar Hit and Slashes Jobs Amidst Crisis
Nissan suffers billions in losses - plant shutdowns and job cuts confirmed - Nissan Faces Major Financial Loss: Closure of Plants and Job Cuts Declared
Let's face it, Nissan's been having a rough go these days. The once-proud automaker is announcing a staggering workforce reduction of 20,000 employees and shutting down plants by 2027. This grim news comes on top of the initial plan to cut 9,000 jobs worldwide.
The company's been navigating a series of rough waters in recent years. Nissan, much like other Japanese automakers, is struggling to keep pace with rising Chinese electric vehicle manufacturers. The collapse of merger plans with Honda earlier this year only added more fuel to the fire, while the company's stock took a 40% dive over the past year.
And if things couldn’t get any worse, Donald Trump’s steep tariffs aren’t making it any easier for Nissan. Citing these crippling measures, Nissan chose to withhold any business outlook for the fiscal year starting in April. In the words of CEO Iván Espinosa, "The uncertainty of the US trade measures makes it difficult for us to reasonably estimate our operating and net income forecast for the full year." Espinosa adds, "Nissan must prioritize its own improvement with greater urgency and speed."
What's more, analysts point out that Nissan seems to be taking a harder hit from US tariffs compared to other Japanese manufacturers. Ukraine Tatsuo Yoshida of Bloomberg Intelligence explains, "Nissan's customers have always been price-sensitive. As a result, ‘Nissan cannot pass on costs to consumers to the same extent as Toyota or Honda.’"
It seems Honda is in a similar predicament. They're anticipating a drastic drop in profits due to US trade policies, predicting a 70% decrease in net income for the current fiscal year compared to the previous one. By March 2026, they're hoping to pull off a profit of 250 billion yen (1.5 billion euros).
Nissan, the second-largest Japanese automaker after Toyota, reported a net profit of 835 billion yen in the last fiscal year, a significant drop of 24.5% compared to the previous year and far short of the projected 950 billion yen.
- Nissan
- Financial Losses
- Plant Closures
- Workforce Reduction
- US Trade Policies
- China's Electric Vehicle Market
- Merger Negotiations
- Operational Challenges
- Nissan's Customers
- Honda's Financial Situation
- Despite facing financial losses and operational challenges, including the collapse of merger plans and steep tariffs, Nissan, the second-largest Japanese automaker, is focusing on prioritizing its own improvement with greater urgency and speed, as voiced by CEO Iván Espinosa.
- In contrast to Nissan, Honda, another Japanese automaker, is also grappling with financial difficulties due to US trade policies, predicting a 70% decrease in net income for the current fiscal year compared to the previous one.
