Nissan Motor announced plans to cut 9,000 jobs and reduce its global production capacity by 20% as it faces challenges in key markets like China and the United States. The company also revised its annual operating profit forecast sharply lower, cutting it by 70% to 150 billion yen ($975 million), marking its second downward revision this year after a 17% cut earlier.
In the second quarter, operating profit dropped a staggering 85% to 32.9 billion yen, well below analyst expectations of 66.8 billion yen.
Nissan’s global sales declined by 3.8% to 1.59 million vehicles during the first half of the financial year, with China experiencing a significant 14.3% drop.
The company also saw a nearly 3% fall in U.S. sales. CEO Makoto Uchida stated that the company would restructure its operations to become more agile and resilient in response to the evolving market conditions.
He emphasized that these changes would not equate to the company shrinking, despite the cuts. The challenges are compounded by intensified competition from local Chinese automakers, particularly in the growing electric vehicle sector.
Peoplesmind
