According to Nissan layoffs news, Nissan has announced the dismissal of 9000 jobs globally. This is expected to impact about 7% of its global workforce, though the Sunderland, UK factory is unlikely to be affected.
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Alongside the job cuts, Nissan layoffs news includes a 20% reduction in production capacity. Nissan anticipates that this production cutback will help streamline operations and reduce operational costs especially in regions where sales have stagnated.
This decision will bring Nissan’s production to approximately 3.2 million vehicles annually, down 7% from last year.
Nissan reported a 94% drop in net income during the first half of the fiscal year. The latest Nissan layoffs news shows a 70% slash in the company’s annual operating income forecast, now adjusted to ¥150 billion.
An increase in expenses with declining demand, has eroded Nissan’s revenue expectations by 9%.
Nissan Motor Corporation CEO Makoto Uchida will forfeit 50% of his salary to align with the company’s cost-cutting measures. Uchida has faced scrutiny for Nissan’s lackluster performance since he took office in 2019.
The CEO admitted to setbacks in understanding shifting consumer demands, particularly the surge in hybrid vehicle interest in markets like the United States.
The Nissan layoffs news points to sales declines in markets such as China and the United States. In China, Nissan sales fell 14.3% as the automaker struggled to capture the attention of consumers in an EV-dominated market led by local competitors.
The US market also presented difficulties with Nissan’s sales dropping nearly 3%, driven by high inventory levels and price competition.
For the July–September quarter, Nissan’s operating profit plummeted 85% to ¥32.9 billion, far below expectations of ¥66.8 billion.
Nissan Motor Corporation’s fiscal challenges have forced it to sell part of its stake in Mitsubishi Motors, representing around a third of its holdings worth approximately ¥68.6 billion.
Nissan Motor Corporation has updated its production target for the fiscal year to 3.2 million vehicles, down from its previous projection. Retail sales estimates have also been revised downward to 3.4 million vehicles as Nissan anticipates reduced sales in all major markets including North America, China, Japan and Europe.
According to Nissan layoffs news, Nissan’s latest financial statement reveals a troubling cash outflow of ¥448.3 billion over six months.
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Nissan has announced plans to reinvest in and expand its EV lineup in China and hybrid vehicle options in the US Future EV launches are expected to include advanced features such as vehicle-to-grid (V2G) technology. These updates are expected to roll out gradually, starting in 2026.
Nissan Motor Corporation has revised its full-year sales forecast reducing it from 3.65 million to 3.4 million vehicles. This downgrade aligns with its reduced production capacity.
Nissan Motor Corporation also expects a sharp decline in operating profit and it is now projected at $973 million, a reduction from $3.7 billion the previous year.
Nissan Motor Corporation has declared an emergency mode to cut costs and enhance efficiency. A priority of this mode is to streamline the company’s resources.
The 9000 jobs cut are part of Nissan’s objective to save approximately $3 billion in costs. This large-scale savings plan is essential to Nissan’s recovery and to ensure that resources are allocated to critical areas like EV technology development and other high-demand products.
Nissan has promoted Guillaume Cartier, who oversees operations in regions including Africa, Europe and the Middle East, to a new position as Chief Performance Officer.
Nissan is selling off a portion of its 34% stake in Mitsubishi Motors, which was acquired during the tenure of former CEO Carlos Ghosn. The sale is expected to generate around $482.7 million.
Nissan Motor Corporation confirmed that it has 30 new or updated models in development. While some may face delayed launches based on market needs, the company plans to retain this product lineup focusing on the most promising options for each region.
The Nissan layoffs news also reveals plans to increase Nissan’s annual sales volume by an additional 1 million vehicles by 2027.
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