Nissan Reports $6.46 Billion Loss... Cutting Factories and Workforce

Number of Global Factories to Be Reduced from 17 to 10
20,000 Employees to Be Laid Off
Honda's Net Profit Drops by 24.5%
Electric Vehicle Plant Operation Delayed Until After 2030

Nissan Motor, which is struggling with management difficulties, has decided to reduce the number of its factories worldwide from 17 to 10.

According to the Nihon Keizai Shimbun (Nikkei) and NHK, Nissan Motor held a financial results briefing for the 2024 fiscal year (April 2024 to March 2025) on May 13, 2025, and announced this management plan.

To improve production efficiency, Nissan plans to reduce the number of vehicle manufacturing plants from the current 17 to 10 by the 2027 fiscal year. As previously reported, the scale of layoffs will be increased to 20,000 employees, equivalent to 15% of its global workforce. Last year, Nissan had announced a plan to cut 9,000 jobs, but it has now added approximately 11,000 more to that number. Nissan also stated that it may halt operations at some of its five factories in Japan.

According to Nissan Motor’s results for the 2024 business year (April 2024 to March 2025) announced on this day, the company recorded a net loss of 670.9 billion yen (approximately 6.46 trillion won). Operating profit also plunged by 70.0%, from 702.2 billion yen in the previous year to 210.2 billion yen. Nissan did not provide forecasts for operating profit or net profit for the 2025 fiscal year, citing uncertainties related to U.S. tariff policies. However, it forecasted sales to be nearly unchanged from the 12.6332 trillion yen in 2024, projecting 12.5 trillion yen for 2025.

Honda, which also announced its results on the same day, reported a net profit of 835.8 billion yen for the 2024 business year, down 24.5% from the previous year. Honda expects net profit to fall by about 70% to 250 billion yen and operating profit to decrease by 59% to 500 billion yen in 2025. Sales are also expected to decline by about 6% to 20.3 trillion yen. The company cited U.S. tariff measures and exchange rates as reasons for the deterioration in results. The average yen exchange rate applied for the earnings outlook was 135 yen per U.S. dollar. Honda also announced that it has postponed the start of operations for its electric vehicle (EV) plant under construction in Canada from the originally planned 2028 to sometime after 2030.