Japanese automotive leader declares significant workforce reductions
Nissan has announced plans to eliminate 9,000 jobs from its global workforce and cut back on production capacity due to declining sales. Read Full Article at RT.com
TroibNews 
Nissan, the Japanese automotive giant, has announced plans to lay off 9,000 employees worldwide and reduce its production capacity by 20% in response to declining sales in key markets.
In a statement released on Thursday, the company reported a drastic 70% cut to its annual operating profit forecast, which now stands at 150 billion yen, marking a second downward revision for this fiscal year. Additionally, Nissan plans to sell back 10% of its shares in Mitsubishi Motors, decreasing its stake from 34%.
To address the current challenges, CEO and President Makoto Uchida will voluntarily forgo 50% of his monthly salary starting this month, alongside other members of the executive committee who will also accept pay cuts.
“Facing a severe situation, Nissan is taking urgent measures to turn around its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market,” the statement asserted.
As Japan's third-largest automaker, Nissan has been struggling with decreased sales in China, the world's largest car market. For the first half of the financial year, global sales fell by 3.8% to 1.6 million vehicles, largely attributed to a 14.3% decline in China, where competition from local manufacturers intensifies.
In the United States, Nissan's sales dipped by 3% to approximately 449,000 vehicles. Combined, the Chinese and U.S. markets represent nearly half of Nissan’s global sales volume.
The company plans to accelerate the introduction of new energy vehicles in China and enhance its offerings of plug-in hybrids and e-POWER models in the U.S., all while aiming to improve sales efficiency across its model range.
“These turnaround measures do not imply that the company is shrinking,” Nissan CEO Uchida stated.
“Nissan will restructure its business to become leaner and more resilient, while also reorganizing management to respond quickly and flexibly to changes in the business environment,” he added.
Uchida, who took the reins in 2019 amid a management crisis following the arrest of former chairman Carlos Ghosn for alleged financial misconduct, has faced ongoing challenges in revitalizing the automaker. His goals include expanding Nissan's electric vehicle lineup, forming new partnerships, and increasing annual sales by an additional 1 million cars by 2027.
Olivia Brown for TROIB News
In a statement released on Thursday, the company reported a drastic 70% cut to its annual operating profit forecast, which now stands at 150 billion yen, marking a second downward revision for this fiscal year. Additionally, Nissan plans to sell back 10% of its shares in Mitsubishi Motors, decreasing its stake from 34%.
To address the current challenges, CEO and President Makoto Uchida will voluntarily forgo 50% of his monthly salary starting this month, alongside other members of the executive committee who will also accept pay cuts.
“Facing a severe situation, Nissan is taking urgent measures to turn around its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market,” the statement asserted.
As Japan's third-largest automaker, Nissan has been struggling with decreased sales in China, the world's largest car market. For the first half of the financial year, global sales fell by 3.8% to 1.6 million vehicles, largely attributed to a 14.3% decline in China, where competition from local manufacturers intensifies.
In the United States, Nissan's sales dipped by 3% to approximately 449,000 vehicles. Combined, the Chinese and U.S. markets represent nearly half of Nissan’s global sales volume.
The company plans to accelerate the introduction of new energy vehicles in China and enhance its offerings of plug-in hybrids and e-POWER models in the U.S., all while aiming to improve sales efficiency across its model range.
“These turnaround measures do not imply that the company is shrinking,” Nissan CEO Uchida stated.
“Nissan will restructure its business to become leaner and more resilient, while also reorganizing management to respond quickly and flexibly to changes in the business environment,” he added.
Uchida, who took the reins in 2019 amid a management crisis following the arrest of former chairman Carlos Ghosn for alleged financial misconduct, has faced ongoing challenges in revitalizing the automaker. His goals include expanding Nissan's electric vehicle lineup, forming new partnerships, and increasing annual sales by an additional 1 million cars by 2027.
Olivia Brown for TROIB News
