Nissan CEO Espinosa Faces Shareholder Backlash Over $4.9 Billion Loss, 20,000 Job Cuts, Seven Factory Closures, and Tariff Impact

Nissan Motor Co. faced intense scrutiny and shareholder criticism at its annual general meeting held on June 24, 2025, amid a deepening financial crisis. The automaker reported a net loss of over 670 billion yen ($4.9 billion) for the fiscal year ending March 2025, marking one of its largest deficits. The company forecasted a further operating loss of 200 billion yen ($1.38 billion) for the April-June quarter, attributing the poor performance partly to high U.S. auto tariffs. In response, Nissan outlined a major restructuring plan involving the reduction of 20,000 employees worldwide and the closure of seven factories, including possible domestic plant shutdowns. The company also announced plans to sell its headquarters building to help cover costs. CEO Ivan Espinosa, in his first shareholder meeting, apologized for the poor results and expressed determination to execute the painful turnaround plan. However, shareholders expressed dissatisfaction over the retention of all outside directors, high executive compensation exceeding 600 million yen for former executives, and questioned management accountability, including criticism of former CEO Makoto Uchida and the failed alliance with Honda. A motion to remove Espinosa as meeting chair was proposed but ultimately rejected. Despite the criticism, all company proposals were approved. The meeting highlighted ongoing challenges for Nissan as it seeks to regain profitability and restore shareholder trust.