Nissan Motor Company reported a net loss of JPY 671 billion (US$4.55 billion) in the 2024 fiscal year (FY2024), which ended on 31 March 2025, slightly better than the JPY700 billion-JPY 750 billion it had forecast in February but still a massive loss nevertheless. This compares with a net profit of JPY 426.6 billion in the previous fiscal year.
Global revenues fell slightly to JPY 12,633.2 billion, while its operating profit plunged by 88% to JPY 69.8 billion, as the company lagged in terms of new product development and the adoption of new technologies. Its operating margin dropped from 4.5% to 0.6%.
Nissan is forecasting a further decline in global revenues for the current fiscal year (FY2025), to JPY12,500 billion. The struggling automaker did not provide an earnings forecast for the year, although it is expected to be negative as the company steps up restructuring under its newly-launched “Re:Nissan” recovery plan. Global operating conditions continue to toughen, particularly following the recent introduction of 25% import tariffs in the US, while competition from Chinese automakers continues to rise.
For the next fiscal year (FY2026), which starts in April 2026, Nissan said it is aiming for positive operating profitability and free cash flow, while cutting fixed and variable costs by JPY 500 billion compared with FY2024.
Nissan confirmed that it will cut an additional 11,000 jobs at its global operations by FY2027, in addition to the 9,000 redundancies announced in late 2024. This will result in a 15% reduction in its global workforce, while the number of vehicle assembly plants will be reduced from 17 to 10 in the next three years.
The automaker described Re:Nissan as a “recovery plan that implements decisive and bold actions to enhance performance and create a leaner, more resilient business that adapts quickly to market changes. With a fresh focus under its new management, Nissan is reassessing its targets and has conducted a comprehensive review of key initiatives, introducing further measures to ensure a strong recovery.”
The company’s newly-appointed president and CEO, Ivan Espinosa, explained further: "In the face of the challenging FY2024 performance and rising variable costs, compounded by an uncertain environment, we must prioritize self-improvement with greater urgency and speed, aiming for profitability that relies less on volume. As a new management team, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery. Re:Nissan is an action-based recovery plan clearly outlining what we need to do now. 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."
Details of the Re:Nissan recovery plan targets
Reduce variable costs by JPY250 billion by FY2026, by accelerating engineering and cost efficiencies while implementing a rigorous governance model. The company has established a dedicated “cross-functional transformation” office staffed by around 300 people to make cost-cutting decisions and will “mobilize” 3,000 staff to focus on cost reduction initiatives.
Reduce fixed costs by JPY 250 billion by FY2026.
Reduce the number of vehicle productionplants globally from 17 to 10 by FY2027 and streamline powertrain manufacturing operations. Accelerate job reformation, work shift adjustments, and capital expenditure reductions, including the cancellation of the planned lithium iron phosphate (LFP) battery plant in Kyushu, Japan.
Reduce global workforce by20,000 employees between FY2024 and FY2027, including the 9,000 redundancies announced at the end of 2024, affecting direct and indirect roles and contractual roles in manufacturing and R&D. Reductions in SG&A staff will also be made as a result of shared services and marketing efficiencies.
Reduce R&D costsby revamping development processes to reduce engineering costs, complexity, speed up development, rationalize global R&D facilities and allocate work to competitive locations. Reduce overall hourly wage costs by 20%.
Reduce components complexity by 70% and cut the number of vehicle platforms from 13 to 7 by FY2035 through platform integration and optimization. Shorten new product development lead times for the first model of a new platform to 37 months, and subsequent models to 30 months. Models being developed under this process include the all-new Nissan Skyline, a new global C SUV and the all-new Infiniti compact SUV.
Redefine market and product strategies to better match local customer needs and tailor product strategy to align with its updated market approach. Reshape product strategies to become more market-focused and more brand-oriented, with a commitment to innovation.
Strengthening collaboration withalliance partners, Renault and Mitsubishi Motors, to deliver models that complement its portfolio and meet unique market needs. Several new joint projects are already underway in North America, Asia and Europe. Continue collaboration with Honda in vehicle intelligence and electrification.
"Nissan targets return to profitability in FY2026" was originally created and published by Just Auto, a GlobalData owned brand.
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