Nissan Announces 9,000 Job Cuts and Significant Production Reductions Amid Financial Struggles

Nissan, Japan‘s third-largest carmaker, has unveiled a drastic turnaround plan in response to its worsening financial situation. CEO Makoto Uchida announced that the company will cut 9,000 jobs globally, approximately 6% of its workforce, to reduce costs and streamline operations.

The job cuts are part of a broader strategy that includes a 20% reduction in global production capacity. This move is aimed at addressing the company’s declining sales and escalating costs, particularly in the U.S. market. Nissan’s sales fell to 1.6 million units in the recent period, largely due to higher selling and production costs.

CEO Makoto Uchida is taking personal responsibility for the company’s poor performance by halving his monthly salary. Other executives will also take voluntary pay cuts as part of the emergency turnaround plan.

Nissan’s financial woes are compounded by its failure to adapt quickly to global market changes, including the shift towards hybrid and electric vehicles. The company has struggled in key markets such as the U.S. and China, where it faces intense competition from domestic and international rivals.

In addition to the job cuts and production reductions, Nissan will sell a portion of its stake in Mitsubishi Motors. The company has also appointed Guillaume Cartier as its new chief performance officer to oversee sales and profit strategies.

Nissan’s profit for the first half of the fiscal year plummeted nearly 20% year-on-year, with the company now forecasting a significant reduction in its annual operating profit. The company has lowered its production forecast for the full year to 3.2 million cars, down from the previous forecast of 3.45 million.