Nov. 7 (UPI) — Nissan announced on Thursday it will cut 9,000 jobs and reduce manufacturing capacity by 20% as it reported results for the first half of the 2024 fiscal year.
CEO Makoto Uchida and other executives will take monthly pay cuts of 50% beginning in November, Nissan said in the financial results report.
“Facing a severe situation, Nissan is taking urgent measures to turn around its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market,” the company said.
Uchida said, however, that the “turnaround measures do not imply that the company is shrinking.”
“Nissan will restructure its business to become leaner and more resilient, while also reorganizing management to respond quickly and flexibly to changes in the business environment,” he said.
Nissan said consolidated net revenue for the six months ending Sept. 30 dropped by $730 million to $55 billion.
Consolidated operating profit decreased $2.78 billion to $300 million.
Net income was nearly $125 million, according to Nissan. Global sales volumes dropped to 1.6 million units year-on-year and costs of operating went up, lowering profits.
Nissan’s revised 2025 outlook calls for net revenue of $116 billion with an operating profit of $1.6 million.
As part of its turnaround strategy, Nissan will name a chief performance officer to oversee sales and profit effective Dec.1.
Even as these turnaround tactics are being implemented Nissan said it’s accelerating plans to “advance the introduction of new energy vehicles in China, and plug-in hybrids and e-POWER in the U,S., while simultaneously increasing sales per model to enhance model efficiencies.”
Nissan is also working to cut vehicle development lead time to 30 months, while enhancing collaboration with Renault Group, Mitsubishi Motors Corp, and Honda Motor Co. Ltd. with strategic partnerships in technology and software services.
Nissan and Toyota increased wages in 2024. Nissan boosted monthly wages by $122, while Toyota increased monthly wages by $193.
In 2023, Nissan and Renault reached agreement to overhaul their partnership with a restructuring that reduced Renault’s ownership stake in Nissan by 28%.