Nissan to cut 9,000 jobs
Nissan Motor Corporation has announced plans to axe 9,000 jobs worldwide and cut its global production by 20 per cent in an effort to save ¥400 billion ($4.3b) in the current financial year.
The move was announced on November 7 as the Japanese carmaker announced its financial results for the six months to the end of September 2024 and revised its full-year outlook.
Nissan’s net revenue in the first half of the year fell by ¥79.1b, or 92.4 per cent, to ¥6b and its consolidated operating profit tumbled by ¥303.8b, or 89.2 per cent, to ¥32.9b.
Global sales for the six months were also down year-on-year to 1.6 million units.
The company now expects its operating profit for the fiscal year ending March 31, 2025, to be ¥150b, down from its previous forecast of ¥500b.
Nissan says it is facing a “severe situation” and is taking urgent measures to turnaround its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market.
While cutting its workforce and production levels, Nissan will also accelerate plans for the introduction of new energy vehicles in China, and plug-in hybrids and e-Power models in the US.
It also hopes to reduce vehicle development lead time to 30 months and enhance its collaborations with Renault Group, Mitsubishi Motors Corporation, and Honda Motor Co.
Makoto Uchida, Nissan president and chief executive officer, explains the measures do not mean the company is shrinking.
“Nissan will restructure its business to become leaner and more resilient, while also reorganising management to respond quickly and flexibly to changes in the business environment,” he adds.
“We aim to enhance the competitiveness of our products, which are fundamental to our success, and set Nissan back on a path of growth.”
To help save money, Uchida, pictured, will also voluntarily forfeit 50 per cent of his monthly compensation starting November 2024 and the other executive committee members will voluntarily take a pay reduction accordingly.
