Automotive
Nissan’s ongoing financial troubles may be worse than the automaker initially let on. What began as a plan to cut 9,000 jobs across its global workforce now appears to be spiraling into something far more significant. According to a new report from Nikkei Asia, the Japanese automaker could soon announce the elimination of around 20,000 positions, more than double the original estimate.
That figure would represent about 15 percent of Nissan’s global employee base. While the company has yet to make an official announcement, reports suggest the news could come any day now, likely alongside its fiscal year 2024 earnings presentation. If confirmed, it would mark one of the most substantial workforce reductions in the brand’s recent history.
Nissan’s financial outlook paints a sobering picture. The automaker recently downgraded its full-year projections for the fiscal year ending March 31, 2025. Global sales volume is now expected to land at 3.35 million units, while net revenue is forecast at 12.6 trillion yen, or roughly $85 billion. Despite the high revenue, the company is anticipating a net loss between 700 and 750 billion yen, which amounts to about $5.3 billion.
Newly appointed CEO Ivan Espinosa addressed the situation on April 24, explaining that the revised forecast comes after a thorough assessment of Nissan’s production and operational assets. “We now anticipate a significant net loss for the year, due primarily to a major asset impairment and restructuring costs as we continue to stabilize the company,” Espinosa said. While the company is not currently attributing its challenges to global tariffs or trade headwinds, Espinosa acknowledged the seriousness of the situation while maintaining that Nissan still has the resources and resolve to move forward.
Interestingly, not everything is pointing downward. U.S. sales for Nissan rose by 5.4 percent in 2024, but that growth came at a cost. Aggressive sales incentives and discounts, strategies that directly reduce profit margins, were used to move inventory. The company’s new “Nissan One” program is another example, offering cash bonuses to dealerships that meet volume targets, even if those vehicles are sold at a loss.
It’s a double-edged sword. Nissan is moving vehicles off lots, but profitability remains elusive. These pricing strategies might boost short-term market share, but they also create a deeper need for cost-cutting in other areas, which helps explain why more layoffs could be on the horizon.
Ultimately, the automaker finds itself in a high-stakes balancing act. Nissan is attempting to stabilize operations, restructure for the future, and remain competitive in a rapidly evolving global auto market. Whether it can pull off a successful turnaround without even deeper cuts remains to be seen.
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