Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Nissan (OTC:NSANY) Motor shares climbed on Tuesday following reports that the company plans to slash about 20,000 jobs globally—more than double the number previously announced—as it pushes ahead with a major business overhaul.
Back in November, Nissan said it would cut 9,000 jobs after a sharp decline in sales in the U.S. and China led to a 94% drop in first-half net profit. But according to Japan’s national broadcaster NHK, the carmaker is set to cut 10,000 more jobs globally, bringing the total figure to roughly 20,000, or roughly 15% of the automaker’s global workforce. The job reductions are set to take place both in Japan and abroad.
The company reported a full-year operating profit of 69.8 billion yen ($472 million), after facing ongoing challenges in key markets and leadership changes, including a CEO replacement. Talks of a merger with Honda (NYSE:HMC) also fell through during the period.
Nissan shares rose 3% in Tokyo.
In the fiscal fourth quarter, Nissan posted net revenue of 3.49 trillion yen and an operating profit of 5.8 billion yen, translating to a slim 0.2% operating margin. The company also reported a net loss of 676 billion yen for the quarter.
Nissan held back on providing financial guidance for the current fiscal year through March 2026.
"Nissan expects the business to continue be challenging with intense competition, forex and inflationary pressure. Yet, our efforts related to U.S. tariff policy under our mitigation strategy, we are prioritizing U.S.-built products, optimizing local capacity, reallocating tariff-exposed production, and working closely with suppliers to localize and adapt swiftly to market demands," the automaker said in the release.
"Given the uncertainty related to tariff environment, the guidance for operating profit, net income and auto free cash flow for the fiscal year are currently to be determined."
Separately, the Nikkei newspaper reported on Tuesday that Nissan is preparing to suspend operations at several domestic factories as part of its restructuring strategy. The specifics of which plants will be affected—and whether closures will be temporary or permanent—have yet to be finalized, the paper said.