Nissan to Cut 9,000 Jobs Worldwide and Reduce Production by 20%

Nissan, the Japanese car manufacturer, announced on Thursday 9,000 job cuts and lowered its annual sales forecast, stating it is taking urgent measures to address "a serious situation."

The company reported a 93% drop in net profit in the first half, with weak sales in the North American market being a significant factor, according to its CEO Makoto Uchida.

Nissan and its domestic rivals are also struggling to stay strong in China, as rapidly growing electric vehicle companies backed by Beijing move ahead. "In the face of a serious situation, Nissan is taking urgent measures to improve its performance and create a more efficient and resilient business, capable of quickly adapting to market changes," the company stated in a release.

"Nissan will cut its global production capacity by 20% and reduce its global workforce by 9,000 people," it added.

Uchida "will voluntarily forgo 50% of his monthly remuneration starting November 2024, and other executive committee members will also voluntarily accept a pay cut accordingly," the statement said.

The company now expects net sales of 12.7 trillion yen ($80 billion), down from the previously forecasted 14 trillion yen.

But Nissan did not issue a net profit forecast on Thursday, after having lowered it in July to 300 billion yen. In the six months to September, net profit was only 19.2 billion yen.

"Net income will be determined due to the ongoing assessment of costs necessary for planned recovery efforts," Uchida said.

The "main" vehicles of Nissan are not performing as well as before in North America, he added. "From a cost and brand strength perspective, we will rebuild our brand in the United States," Uchida insisted.

Among other measures, the car manufacturer will reduce its stake in Mitsubishi Motors by selling shares to the company. Specifically, its stake in Mitsubishi will fall to around 24% from the current 34%, but it will continue to maintain close ties with the company.

Nissan has experienced a turbulent decade that included the shocking arrest in 2018 of former chief Carlos Ghosn, who later jumped bail and fled Japan hidden in a music equipment box.

Ghosn remains an international fugitive in Lebanon and denies the charges against him. He said he fled Japan because he did not believe he could receive a fair trial.

When asked about Donald Trump's victory in the U.S. presidential elections, Uchida simply said that Nissan was "listening to various things, like tariffs, but it's not just about us."

"We will lobby and the direction of our medium- and long-term plans must be maintained, but we will carry out our activities while carefully monitoring the situation," he added.