Japanese automaker Nissan announced on Thursday it will cut 9,000 jobs globally and reduce its annual sales forecast, citing a sharp decline in profitability and challenges in key markets like North America and China.
Nissan reported a 93 percent drop in net profit for the first half of the fiscal year, largely due to weak sales in North America. CEO Makoto Uchida stated, “Facing a severe situation, Nissan is taking urgent measures to turnaround its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market.”
The company will reduce global production capacity by 20 percent and its workforce by 9,000 employees. Uchida will voluntarily forfeit 50 percent of his monthly compensation starting in November 2024, with other executive committee members also taking pay cuts.
The revised forecast projects net sales of 12.7 trillion yen ($80 billion), down from the previously forecasted 14 trillion yen. Nissan did not issue a net profit forecast, noting that costs related to the planned restructuring are still being assessed. In the six months leading up to September, the automaker posted a net profit of just 19.2 billion yen.
Uchida emphasized the need to rebuild Nissan’s brand strength in North America, noting that the company’s core models are underperforming in the region. “From a cost perspective and a brand-strength perspective, we will rebuild our brand in America,” he said.
Nissan also plans to reduce its stake in Mitsubishi Motors from 34 percent to around 24 percent by selling shares back to the firm, though Uchida said the company would maintain close ties with Mitsubishi.
These measures come after a turbulent period for Nissan, including the 2018 arrest of former CEO Carlos Ghosn, who later fled Japan to Lebanon. Ghosn denies the allegations against him, stating he could not receive a fair trial in Japan.
Regarding potential impacts from the recent U.S. presidential election, Uchida said, “hearing various things, like tariffs, but it’s not just us. “We will be lobbying, and the direction of our medium- to long-term plans should remain, but we will conduct our business while monitoring the situation carefully.”
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