Nissan Layoffs: Automaker Plans To Eliminate 9,000 Jobs Amid Cost-Cutting Efforts

"These turnaround measures do not imply that the company is shrinking," CEO, Makoto Uchida emphasised in a statement accompanying the earnings report

Nissan Layoffs: Nissan Motor announced a series of cost-cutting measures on Thursday, including the elimination of 9,000 jobs, and downgraded its annual forecast for the second time this year as it grapples with challenges in key markets, particularly in China.

The automaker also revealed plans to reduce its global production capacity by 20 per cent,  according to a Reuters report.

"These turnaround measures do not imply that the company is shrinking," CEO, Makoto Uchida emphasised in a statement accompanying the earnings report.

"Nissan will restructure its business to become leaner and more resilient while also reorganising management to respond quickly and flexibly to changes in the business environment,” he added.

The company revised its operating profit forecast for the financial year, lowering it to 150 billion yen ($974.98 million) from the previous estimate of 500 billion yen.

Operating profit for the July-September period totalled 32.9 billion yen, a sharp 85 per cent decline from 208.1 billion yen in the same quarter last year. This fell short of the 66.8 billion yen average forecast from a poll of eight analysts conducted by LSEG.

Nissan Quarterly Results

Nissan has revised its annual operating profit forecast downward by 70 per cent, now projecting 150 billion yen ($975 million), marking the second cut this year following a 17 per cent reduction earlier. For the second quarter (July-September), operating profit stood at 32.9 billion yen, significantly below the 66.8 billion yen consensus estimate from LSEG.

According to a Reuters report, Nissan's global sales fell by 3.8 per cent to 1.59 million vehicles in the first half of the financial year, with a sharp 14.3 per cent decline in China, driven by fierce competition from local manufacturers in the rapidly growing EV market. In the US, sales dropped by 3 per cent to 449,000 vehicles. Together, these two markets account for nearly 50 per cent of Nissan's global sales volume.