Nissan To Slash 9,000 Jobs
The company is scaling back global production capacity by 20%, in response to weakening sales in key markets like China, North America & Japan
Nissan Motor announced significant cost-cutting measures, including reducing its workforce by 9,000 jobs and scaling back global production capacity by 20 per cent, in response to weakening sales in key markets like China, North America, and Japan.
These strategic changes, which come alongside a downward revision of Nissan’s annual earnings forecast for the second time this year, highlight the automaker's struggle to return to profitability. Nissan’s operating profit fell by 90 per cent in the first half of the fiscal year, illustrating the urgency of its restructuring plans.
In addition to these cuts, CEO Makoto Uchida will halve his monthly salary starting November 2024, with other senior executives also opting for voluntary pay reductions. These actions form part of a larger initiative to trim 300 billion yen in fixed costs and 100 billion yen in variable expenses as Nissan adapts to competitive pressures and sluggish demand in a transforming auto market dominated by electric vehicle growth, particularly from Chinese manufacturers.
