After eyeing 20,000 layoffs, Nissan’s new CEO faces tough investor questions
Nissan Motor’s newly appointed Chief Executive Officer Ivan Espinosa is bracing for a challenging debut in front of shareholders this week, as he fields tough questions about the Japanese automaker’s ongoing financial crisis, planned job cuts, and urgent restructuring needs.
The high-stakes shareholder meeting comes on the heels of a disastrous financial year for Nissan, marked by declining sales, mounting debt, and increasing global uncertainty, particularly around tariffs. According to Bloomberg, the stock has plummeted 28% since the start of the year, a harsh vote of no confidence from investors hoping Espinosa can turn the ship around.
Espinosa, 46, stepped into the top job in April 2025, inheriting a crisis-ridden company still reeling from years of management instability, ageing vehicle models, and the fallout from the 2018 arrest of former chairman Carlos Ghosn. While his appointment has received backing from proxy advisory firms such as Institutional Shareholder Services (ISS) and Glass Lewis, his restructuring roadmap faces significant investor scrutiny.
In May, Espinosa laid out a drastic plan to reduce costs, pledging to eliminate 20,000 jobs and shutter seven of the company’s 17 manufacturing sites globally. While aimed at restoring profitability, the cuts have raised alarm about long-term production capacity and the morale of a workforce already battered by years of uncertainty.
Compounding the pressure is the burden of nearly ¥800 billion (S$6.9 billion) in debt maturing in the next fiscal year, and the spectre of steep operating losses. Bloomberg Intelligence analyst Tatsuo Yoshida estimates Nissan could lose up to ¥450 billion (US$2.1 billion) by March 2026 if US tariffs on autos and parts remain in place. Even under more favourable conditions, losses could still hit ¥300 billion — marking the worst performance in the company's history.
Espinosa, however, remains publicly confident. He has told investors that Nissan has ¥2.1 trillion in untapped credit lines and liquid reserves, though rating agencies have downgraded the company’s credit to junk status following a year of negative cash flow.
The decision to refocus the company’s limited resources has already begun. Reports indicate that Nissan is consolidating its manufacturing operations and may not have the capacity to shift production to mitigate tariff exposure in the near term. Internally, the company is also exploring ways to raise more than ¥1 trillion through asset sales and debt offerings, including convertible bonds and divestment of stakes in alliance partner Renault and other entities. Sources cited by Bloomberg suggest these plans are still under discussion and have yet to receive board approval.
Meanwhile, Espinosa’s first shareholder meeting — typically a vocal affair in Japan — is expected to spotlight investor dissatisfaction. Retail shareholders, activist funds, and analysts are likely to question not only the depth of the planned cuts but also the feasibility of Nissan’s turnaround given ongoing structural and market headwinds.
Notably, market anxiety intensified earlier this year after news broke that activist fund Effissimo Capital Management had acquired a stake in Nissan. Although a filing this week showed the firm no longer listed as a major shareholder, its involvement stirred concerns about potential board-level friction or alternative strategic pressures.
Beyond internal turmoil, Nissan’s outlook remains clouded by broader sectoral changes. One of its key suppliers, Marelli Holdings, recently filed for Chapter 11 bankruptcy protection in the United States, citing the dual challenges of EV transition and trade tariffs. This development underscores the vulnerability of Nissan’s supply chain and the urgency of its operational overhaul.