Nissan is cutting 9,000 jobs amid falling sales and rising costs

Nissan, the Japanese carmaker, has announced it will cut 9,000 jobs – six percent of its 133,000 global workforce – after experiencing a decline in sales during the latest fiscal quarter.

Nissan reported a loss of 9.3 billion yen ($60 million) in the quarter ending September; a sharp contrast to the profit of 190.7 billion yen in the same period last year.

Sales fell to 2.9 billion yen ($19 billion) from 3.1 billion yen last year as the company struggled to adapt to changing market conditions.

CEO Makoto Uchida took responsibility for the poor performance, announcing that he would take a 50% pay cut.

Nissan Job Cuts: What You Need to Know

Despite the setback, Uchida reassured investors, saying the company is committed to the restructuring and transformation ahead.

He said “We will redesign Nissan to be lighter and more powerful.”

Uchida also admitted that the company had not responded quickly enough to changes in global market trends and rising raw material costs, and promised to make the necessary changes to first.

As part of its restructuring efforts, Nissan will reduce its global production capacity by 20 percent.

However, Uchida did not say which areas will be most affected by the cuts.

Nissan’s problems were particularly well known in the US, a key market for the carmaker, where its cars struggled to compete with rivals including Ford, Toyota and Tesla.

How Will Nissan Organize?

The company is reviewing all aspects of its operations to determine how it can address these issues.

For the first half of the fiscal year, Nissan’s revenue fell 1 percent to 5.98 billion yen ($39 billion) compared to the same period last year.

Its profit for the six months fell sharply, falling to 19.2 billion yen ($124 million) from 296.2 billion yen last year.

The company now expects sales of 3.4 million vehicles, down from the previous estimate of 3.65 million. The revised forecast brings Nissan’s expected sales back in line with last year’s figures.

Will Nissan recover from its losses?

Nissan also lowered its full-year revenue estimate to 12.7 billion yen ($82 billion), down from its earlier forecast of 14 billion yen ($82 billion). 91).

The company declined to provide a profit forecast, citing continued uncertainty but promised to release one as soon as possible.

Earlier, Nissan expected an annual profit of 300 billion yen ($1.9 billion).

In an effort to get the company back on track, Nissan is appointing a new Chief Operating Officer, who will start next month and focus on driving the company’s growth signals.

Due to financial difficulties, the company has announced that no dividends will be paid for the current financial year.

Despite the difficulties, Uchida remained optimistic about Nissan’s ability to bounce back, focusing on restructuring the company for long-term success.

This article has additional reporting from The Associated Press