Nissan reports 4.5 billion dollars in annual losses and announces 20,000 job cuts

Japanese automaker Nissan on Tuesday reported annual losses of 4.5 billion and announced a plan to cut 15% of its workforce, in a balance sheet in which it warned about the possible impact of U.S. tariffs.

The company, which is facing heavy debt, tried this year to merge with Japan's Honda, which did not materialize, and is now focused on a tough restructuring plan.

"The reality is clear. We have a very high cost structure and to further complicate matters, the global market environment is volatile and unpredictable, which makes planning and investment an increasing challenge," Nissan's chief executive, Mexican Ivan Espinosa, told reporters.

Nissan posted net losses of $4.5 billion (671 billion yen) in the fiscal review ended in March.

The partnership with Renault and the arrest in Japan of CEO Carlos Ghosn

This figure is close to the record losses recorded between the years 1999-2000, of $4.6 billion, which ended up pushing the company into a partnership with French manufacturer Renault, a turbulent operation, marked by problems including the arrest in Japan of CEO Carlos Ghosn.

Nissan did not release a net profit forecast for the upcoming 2025-26 fiscal year and merely said it expects to achieve more than $80 million in sales.

"The uncertain nature of the U.S. tariff measures makes it difficult for us to estimate our full-year operating profit and net profit forecasts in a rational way, so we have left those figures unstated," Espinosa explained.

The announcement of a plan for a 20,000 job cut relieved the markets and the company's shares closed up 3%.

"We wouldn't do this if it wasn't necessary for survival," Espinosa stated.