Nissan axes 9000 jobs, cuts annual profit outlook by 70%
Japan’s third-largest automaker cut its annual operating profit forecast to USD 975 million as it grapples with falling sales in two of its biggest markets China and the United States.
Nissan Motor is slashing 9,000 jobs and cutting global production capacity by a fifth, the company announced.
Japan’s third-largest automaker has also cut its annual operating profit forecast by 70% to 150 billion yen (USD 975 million) as it grapples with falling sales in two of its biggest markets China and the United States, Reuters reports.
Nissan reportedly had 133,580 employees as of March 31. It is not immediately clear how the job cuts would be distributed among its global workforce.
Operating profit for the July-September second-quarter fell 85% to 32.9 billion yen, far below an estimate of 66.8 billion yen.
“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,” Nissan CEO Makoto Uchida said in a statement. “These turnaround measures do not imply that the company is shrinking.”
Nissan’s global sales dropped 3.8% to 1.59 million vehicles for the first half of the financial year, on the back of a 14.3% drop in China. US sales fell almost 3% to about 449,000 vehicles.
Nissan also said it will sell part of its stake in its alliance partner Mitsubishi.
Last year, Nissan had pledged that all its vehicles sold in Europe will be electric by 2030.
