Uchida said Nissan will cut 9,000 jobs worldwide. That's about 6.7% of the company's workers. The company will also reduce global output by 20 percent as part of this restructuring.
In addition, it’s selling 149,028,300 shares of Mitsubishi, a move that will reduce Nissan’s ownership stake in Mitsubishi from 34.07 percent, signaling a possible retreat from deeper alliances within the Renault-Nissan-Mitsubishi Alliance.
The company's not doing well money-wise. In the last three months of 2023, Nissan lost 9.3 billion yen ($61 million). That's a big change from the same time last year when they made a profit of 191 billion yen ($1.25 billion).
These decisions come in response to struggling sales and reduced profit forecasts. For the third quarter of 2024, Nissan reported a net loss of 9.3 billion yen (about $61 million at current exchange rates), a sharp reversal from the 191 billion yen ($1.25 billion) profit in the same period last year. As a result, the company has slashed its full-year revenue forecast to 12.7 trillion yen ($83 billion) and now expects to sell 3.4 million vehicles this fiscal year, down from the previous estimate of 3.7 million
The company says it’s still going to build the 30 new or updated models included in its Arc plan but their timing might be delayed.
“We have no choice but to partially revise the plan,” Uchida said. “It is my deepest regret to face this challenging situation in the initial year of The Arc. “I plan to take our company towards future growth. The lives of 130,000 Nissan employees and their families around the world rest on my shoulders. I feel great responsibility as a leader of the company.”
One area where Nissan has fallen behind, according to Uchida, is its hybrid offerings—particularly in the US market, where demand for these vehicles remains high. It’s working to remedy that issue and also to cut overall development time down to 30 months so that the brand can be more flexible and quick to react to market conditions.
To his credit, Uchida says he and other executives are taking pay cuts. Personally, he's giving up half his salary starting this month. That seems reasonable, given that the company has now cut its annual profit forecast by 70 percent. It's the second time this year that Nissan has lowered that forecast, which now stands at 150 billion yen ($975 million).
Source: Nissan