Japanese automaker Nissan announced significant changes today, revealing it will lay off 9,000 employees and reduce global production by 20%. This decision comes as Nissan sales have dropped, impacting its financial health.
In the previous quarter, Nissan reported a 9.3 billion yen loss (55 million euros), contrasting sharply with its profit of 190.7 billion yen during the same period last year. The company’s first-half revenue dropped by 1%, totaling 5.98 trillion yen (36 billion euros), down from 6 trillion yen previously. Additionally, quarterly sales revenue fell from 3.1 trillion yen to 2.9 trillion yen (15 billion euros), reflecting weak demand for Nissan models, particularly in the US, where car sales are dominated by competitors like Ford, Toyota, and Tesla.
To demonstrate accountability, Nissan CEO Makoto Uchida announced he would take a 50% pay cut, acknowledging Nissan’s need for a more responsive and adaptable strategy. Uchida emphasized that Nissan must address the global automotive market‘s changing dynamics, including shifting consumer preferences and rising raw material costs. The company is re-evaluating every aspect of its operations to ensure future stability.
Nissan has also revised its sales forecast for the fiscal year ending March 2025, now estimating 12.7 trillion yen (76 billion euros) in revenue, down from the previous projection of 14 trillion yen (84 billion euros). Expected vehicle sales were also lowered to 3.4 million units worldwide, compared to the earlier goal of 3.65 million units.
By refocusing operations and implementing these strategic changes, Nissan aims to recover market share and improve financial performance amid challenging market conditions.
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