Car manufacturer Nissan reported an annual net loss of $4.5 billion, warning of a 15% reduction in its global workforce and the potential impact of US tariffs.

The heavily indebted automaker, which failed to merge with Honda this year, is sharply cutting production as part of a costly recovery plan.

"Nissan must work urgently and at a faster pace to improve. The reality is clear. We have a very high cost structure. What's more, the global market environment is unstable and unpredictable, making planning and investment increasingly difficult," said CEO Ivan Espinosa.

Nissan reported a net loss of 671 billion yen ($4.5 billion) for the fiscal year ending March 2025, AFP reported.

The company's heaviest annual loss was 684 billion yen in 1999-2000, during a crisis that led to a partnership with French carmaker Renault.

Renault, which owns nearly 36% of Nissan, said it expects a loss of €2.2 billion for the first quarter due to the Japanese company's recovery plan.

Nissan did not provide a net profit forecast for 2025-2026.

"The uncertain nature of US tariffs prevents us from providing a rational forecast for full-year operating and net profit, so we have left these figures unspecified," Espinosa explained.

Faced with this situation, the company confirmed that it plans to cut a total of 20,000 jobs worldwide.

"We would not have done this if it were not necessary for survival," Espinosa said, referring to the job cuts.

A merger with Japanese rival Honda was seen as a possible lifeline, but talks collapsed in February when Honda offered to make Nissan a subsidiary.

Economists warn of uncertain days ahead for Nissan, as the company is expected to be severely affected by a 25% tariff on imported vehicles imposed by US President Donald Trump. | BGNES