Nissan, the Japanese automaker, announced a loss for the latest fiscal quarter with sinking vehicle sales and escalating costs, leading to a decision to cut 9,000 jobs globally. Chief Executive Makoto Uchida declared a 50% pay cut to take responsibility for the poor performance, assuring stakeholders of an imminent turnaround.
Key Points:
Nissan to reduce global workforce by 9,000 employees, about 6% of its workforce.
Global production capacity to be slashed by 20%.
Quarterly loss of 9.3 billion yen ($60 million), a stark contrast to the previous year's profit of 190.7 billion yen.
Quarterly sales drop to 2.9 trillion yen ($19 billion) from 3.1 trillion yen.
Uchida refrained from disclosing specific regions affected by the job cuts but emphasized the need for restructuring to adapt to global changes. Market analysts attribute Nissan's poor performance to slow responses to market shifts and rising raw material costs.
Future Plans and Projections:
Nissan plans to review all operational aspects and strategies.
Sales revenue forecast for the fiscal year through March 2025 revised to 12.7 trillion yen ($82 billion) from the initial 14 trillion yen projection.
Net profit forecast remains uncertain, with a previous estimation of 300 billion yen ($1.9 billion).
The automaker aims to sell 3.4 million vehicles by March 2025, scaling down from the earlier target of 3.65 million vehicles. Additionally, a chief performance officer will join next month to oversee turnaround initiatives, and dividends are suspended due to the challenging financial results.
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