Nissan to axe 9,000 jobs, reduces profit forecast by 70%
Japanese automotive giant Nissan has announced a series of cost-saving measures including a major workforce reduction. The company plans to cut around 9,000 jobs and has also downgraded its annual profit forecast for the second consecutive time this year. The decision comes as Nissan struggles in key markets such as China.
Nissan's restructuring strategy and production cuts
Apart from the job cuts, Nissan also plans to cut its global production capacity by a whopping 20%. Despite the drastic measures, CEO Makoto Uchida assured this doesn't mean the company is downsizing. "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," Uchida said in an earnings report.
Nissan slashes annual profit forecast amid market challenges
Nissan has drastically slashed its operating profit forecast for the ongoing fiscal year from 500 billion yen ($3.25 billion) to 150 billion yen ($974.98 million). The revision follows an 85% drop in the operating profit for the July-September quarter, which stood at a mere 32.9 billion yen - a far cry from the 208.1 billion yen it posted in the same quarter last year.
