Nissan Motor forecasts a narrower annual net loss of 550 billion yen, about $3.45 billion, after reversing a provision tied to relaxed U.S. emissions rules. The shift follows aggressive cost‑cutting, including selling its headquarters, trimming jobs and shrinking production sites.

Earlier guidance had pegged the loss at 650 billion yen, so the revision signals progress amid a slump in global sales. A weaker yen boosts export competitiveness and lifts the yen value of overseas earnings, while foreign‑exchange gains also lift the bottom line.

Nissan’s restructuring—selling its headquarters, cutting jobs and scaling back capacity—aims to stabilize finances as the automaker confronts declining demand. The revised loss still reflects a challenging environment but marks the first step toward a more sustainable cost structure for the company.

Investors will scrutinize whether the cost cuts translate into higher operating margins in the coming quarters. Analysts note that the company’s ability to capitalize on a softer yen and its disciplined restructuring could improve profitability, but uncertainty around future sales growth remains a risk factor for stakeholders.

The revised loss, while smaller, still exceeds expectations for a profitable year, underscoring the depth of Nissan’s restructuring needs. Market watchers will monitor subsequent earnings releases to gauge whether the company can reverse its trajectory and return to profitability.