Nissan to cut 20,000 jobs as Trump's tariffs complicate plans to escape its financial crisis

Core Viewpoint - Nissan is undergoing significant cost-cutting measures, including job cuts and production facility reductions, in response to financial struggles exacerbated by US tariffs [1][2][4]. Group 1: Financial Performance - Nissan reported a net loss of 671 billion Yen ($4.5 billion) for the 2024 financial year and will not provide an operating profit forecast for 2025 due to uncertainties surrounding US tariffs [2]. - The company estimates that tariffs on imported vehicles will cost it 450 billion Yen ($3 billion) this year without mitigation measures [4]. Group 2: Strategic Changes - Nissan plans to cut 20,000 jobs and reduce its production facilities from 17 to 10 by 2027, which includes 9,000 layoffs announced previously [1]. - The new CEO Ivan Espinosa aims for cost reductions of 250 billion Yen ($1.7 billion) as part of the turnaround plan [3]. Group 3: Market Impact and Response - The company is particularly vulnerable to Trump's 25% tariff on imported vehicles, as it exports several models to the US from Mexico and Japan [4]. - Nissan intends to boost US production capacity and prioritize retail sales of models assembled locally, while also shifting some models affected by tariffs to other markets [5].