Nissan vowed to close seven factories and slash 20,000 jobs after posting its biggest annual loss since French carmaker Renault rescued it from near bankruptcy a quarter century ago.
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The Japanese carmaker decided against issuing an operating profit forecast for the financial year ending March 2026, and reported a net loss of 670.9 billion yen (US$4.5 billion) for the year that ended in March.
“The reality is clear,” Nissan’s newly minted Chief Executive Officer Ivan Espinosa said on Tuesday in his first post-earnings briefing since taking the top job in April. “Nissan must prioritise self-improvement with greater urgency and speed.”
Espinosa, who has held roles at Nissan since 2003, is accelerating its restructuring. The carmaker will close the seven manufacturing facilities by the 2027 financial year, with annual production capacity set to fall to 2.5 million units from 3.5 million last year. Details around which seven facilities would close were not given.
Nissan also confirmed it would cut 20,000 jobs, including the loss of 9,000 roles it announced in November. The measures are aimed at cutting costs by 500 billion yen.
The ailing Japanese carmaker has struggled to turnaround its business as its ageing line-up failed to win over consumers in the US and China. It had already replaced most of its top executives after efforts to combine with Honda fell apart earlier this year, leaving it in urgent need of another lifeline.