Nissan slashes 15 percent of its global work force as the Japan automaker sinks into losses
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The job cuts to be done by March 2028 include the 9,000 head count reduction announced last year. Nissan also previously announced the scrapping of plans to build a battery plant in Japan.
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Espinosa, who took the helm earlier this year, said the latest plans followed a careful review of operations, to align production with demand, including coming up with market and product strategies. Nissan will also leverage its partnerships such as the one with Renault SA of France in Europe and Dongfeng Nissan in China, he said.
The Yokohama-based automaker said U.S. President Donald Trump's tariffs on auto imports also hurt its results.
Nissan racked up a loss of 670.9 billion yen ($4.5 billion) for the fiscal year through March, down from a 426.6 billion yen profit recorded the previous fiscal year.
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For the latest quarter through March, Nissan recorded red ink totaling 676 billion yen ($4.6 billion). It also said its recovery plan includes trying to reduce costs by 500 billion yen ($3.4 billion) compared to current costs.
'As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery,' Espinosa said.
'All employees are committed to working together as a team to implement this plan, with the goal of returning to profitability by fiscal year 2026,' he said.
But Nissan Chief Financial Officer Jeremie Papin acknowledged the automaker faces serious challenges. Nissan did not give a profit projection for the fiscal year through March 2026, citing uncertainties.
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