Nissan posted a massive annual loss as it failed to innovate, compete and restructure and found itself with a tired lineup and lagging in the ongoing technological revolution in the automobile industry.

In an announcement Tuesday, the Yokohama-based company reported a net loss of ¥670 billion ($4.5 billion) in fiscal 2024. The period ended March 31, just days before new 25% tariffs on automobiles were effective in the United States.

It is the third biggest annual loss in Nissan's history.

The company continues to make efforts to improve its performance and prospects. It plans more than 10,000 job cuts globally in addition to the 9,000 cuts announced previously. This means Nissan will be reducing its workforce by about 15%.

“As you can see, our full-year financial results are a wake-up call,” said Nissan CEO Ivan Espinosa.

“The reality is clear,” he added. “We have a very high cost structure. To complicate matters further, the global market environment is volatile and unpredictable, making planning and investment increasingly challenging.”

Nissan is ramping up its turnaround efforts as the previous plan was widely seen by analysts as falling short.

In February, the company reported that it would be cutting ¥400 billion in annual fixed and variable costs in fiscal 2026 while aiming to lower the break-even point in terms of unit sales to 2.5 million from 3.1 million.

On Tuesday, Nissan updated the turnaround strategy, saying it now aims to cut ¥500 billion in annual fixed and variable costs. It will also reduce its number of production bases to 10 from 17.

The focus now is whether a Nissan led by Espinosa, who took the helm of the company last month, will be able to turn the situation around.

“I actually have a very positive view for the new management team,” said Takaki Nakanishi, an auto analyst who heads Nakanishi Research Institute, during a news conference at the Foreign Correspondents’ Club of Japan last month.

Nakanishi said a major issue for the company is its slow decision making process, with the previous management team largely controlled by veteran Japanese executives.

The new team is a mix of non-Japanese executives and younger Japanese employees, so it will probably be able to make quick decisions, Nakanishi said.

He added that many Nissan employees he spoke with voiced confidence in Espinosa’s leadership.

Former CEO Makoto Uchida stepped down from the top post after his leadership was questioned both internally and externally.

Nissan shares gained 3% on Tuesday as the broader market rose following news of a deal between China and the United States on tariffs. The company's shares are down by more than one-third over the past year.

Nissan refrained from issuing guidance for the current fiscal year.

The U.S. introduced 25% tariffs on vehicles on April 3. This month, 25% tariffs on auto parts were also put into effect. Japan is still negotiating with the administration of U.S. President Donald Trump and is seeking a complete elimination of the new tariffs.

As it is increasingly difficult for Nissan to be effective in the market, the automaker is seeking a strategic tie-up.

Under Uchida’s leadership, Nissan sought a merger with Honda, but the two companies gave up on the deal in February just weeks after talks formally started. Negotiations fell apart after Honda proposed to make Nissan a wholly-owned subsidiary. Nissan rejected the proposal because it was unclear how much independence it would have.

The merger would have created the world’s No. 3 vehicle manufacturing group if Mitsubishi Motors joined, after having also expressed interest in the newly merged company.

Despite giving up on the merger, Honda and Nissan will still cooperate on new technologies such as those related to electric vehicles and automobile intelligence.

Honda CEO Toshihiro Mibe said on Tuesday that there is no plan to revive the merger deal with Nissan for now, so the two companies will focus on maximizing the benefits of business agreements between them.