Nissan cuts 9,000 jobs to save $2.6 billion amid sales slump

In Tokyo, Nissan Motor announced a significant restructuring plan aimed at addressing its declining sales, particularly in China and the United States. This plan, revealed in late November 2024, includes measures such as cutting 9,000 jobs, which accounts for approximately 6.7 percent of its workforce of 133,580 employees. Furthermore, Nissan is reducing its global production capacity by 20 percent to cope with the challenges posed by fierce competition and a lagging market presence. The company's decision comes after a dismal report indicating that its operating profit for the second quarter of the financial year plummeted by 85 percent, undershooting market expectations. In addition to adjustments in workforce, Nissan has lowered its annual operating profit forecast by 70 percent to 150 billion yen, translating to about $975 million. This marked the second cut of its profit outlook within the same year, highlighting the ongoing struggles of the automaker. The financial turmoil can be linked to the rapid changes in the automotive market, particularly the rising demand for electric and hybrid vehicles. Nissan's CEO, Makoto Uchida, acknowledged the company’s shortcomings in providing an adequate hybrid and plug-in hybrid lineup, which has hindered its ability to compete in the U.S. market. Notably, the company reported a combined sales downturn of 3.8 percent globally, led by a significant 14.3 percent decline in the crucial Chinese market. To enhance operational efficiency, Nissan aims to reduce vehicle development lead time down to 30 months and strengthen collaboration with strategic partners, including Renault Group and Mitsubishi Motors. Additionally, the automaker plans to divest up to 10 percent of its stake in Mitsubishi Motors to secure additional capital. Overall, the measures reflect Nissan's urgent need to adapt to a rapidly evolving automotive landscape shaped by electric vehicle transitions and shifting consumer preferences.