Nissan to slash 20,000 jobs amid massive financial loss
On Tuesday, the Japanese automotive corporation Nissan announced that it plans to cut 20,000 jobs worldwide. This decision is a response to the company's significant net loss in the completed fiscal year 2024/2025. This loss amounted to 671 billion yen, translating to 4.1 billion euros (approximately 4.3 billion dollars).
Nissan's deteriorating financial results are mainly due to weak sales in key markets such as the United States and China and high restructuring costs.
The report highlighted that the company's operating profit decreased by 87.7 percent, reaching 69.8 billion yen (425 million euros, approximately 450 million dollars), and sales revenue dropped by 0.4 percent to 12.63 trillion yen (76.9 billion euros, approximately 81.5 billion dollars).
Restructuring plan
In response to the challenging financial situation, Nissan announced a comprehensive restructuring plan. In addition to layoffs, the company plans to reduce the number of its factories from 17 to 10 by the fiscal year 2027/2028.
The corporation has not provided forecasts for the current financial year 2025/2026, citing uncertainty about the potential impact of American tariffs on the automotive industry.
Problems of other manufacturers
Nissan is not the only company facing issues. Honda Motor Co. anticipates that its net profit in the current fiscal year will drop by 70.1 percent to 250 billion yen (1.5 billion euros, approximately 1.6 billion dollars), and sales will decrease by 6.4 percent. In this case, American tariffs also have a negative impact.
