Nissan pushes for profit after deep losses

Nissan Motor Co. is working to return to profitability after reporting substantial losses in recent years. For the fiscal year 2025-2026, the automaker posted a net loss of 533 billion yen, equivalent to about 2.88 billion euros. This result, while still negative, marks an improvement compared with the previous fiscal year, when the company recorded a net loss of 670.9 billion yen.

The narrowing loss reflects efforts to stabilize the business following an extended period of financial strain. Nissan’s leadership sees the latest figures as a step toward restoring the company’s financial health, even as the group remains in the red.

As part of its restructuring program, called Re:Nissan, the company has set a goal of returning to the black in the upcoming fiscal year. Nissan is targeting a modest net profit of 20 billion yen, or around 108 million euros, for the 2026-2027 fiscal year. This objective signals a shift from managing losses to seeking sustainable profitability.

The profit target is framed as an initial milestone rather than a rapid rebound, indicating a gradual recovery path. Nissan’s management links the improvement in results to changes in operations and product strategy, including an emphasis on core vehicle lines and efficiency.

Central to the Re:Nissan plan are significant reductions in production capacity and headcount. The company has already closed seven of its 17 factories worldwide, a move aimed at aligning manufacturing output with demand and reducing fixed costs across its global footprint.

In addition to plant closures, Nissan plans to cut about 20,000 jobs by 2028. This reduction represents roughly 15% of its total workforce. The cuts are part of a broad effort to streamline operations, simplify the organization, and lower operating expenses.

These actions indicate a substantial reshaping of Nissan’s industrial base. The combination of plant shutdowns and workforce reductions is intended to support the company’s shift toward a more focused and cost-efficient business model.

Nissan’s leadership describes its outlook as cautiously optimistic, citing gains in operational efficiency and a renewed focus on core product lines. The restructuring program is designed to prioritize models and markets where the company sees the strongest potential to improve margins and stabilize revenue.

Management ties the improved loss figures and future profit target to these operational measures. While acknowledging the scale of the challenges, executives point to early signs that the reshaping of the manufacturing network and workforce is beginning to reflect in financial performance.