Nissan will cut 9000 jobs from its global workforce and slash production by 20% to five millions units per year as part of heavy cost-cutting measures.
The Japanese firm is looking to reduce costs by ¥400 billion (£2bn) after posting drastic drops in revenue (down 79% to £30bn), pre-tax profit (304% to £165 million) and income (277% to £95m).
This has dropped its 2024 forecast by £6.5bn to £63bn and pre-tax profits by £1.8bn to £753m.
Nissan hasn't confirmed where it will cut its headcount numbers from. It currently employs 133,580 staff globally, with around 6000 at its Sunderland plant, where it builds the Qashqai and Juke.
Nissan UK told Autocar that final decisions had not yet been made.
“The question is how to do it fast and adapt to reality,” Nissan CEO Makoto Uchida told journalists, reports Automotive News Europe. “We cannot deny the fact that our sales plan was overstretched, given the rapid changes in markets.”
The cost-cutting won’t affect any of the brand’s promised 30 new or under models it announced under The Arc project, but timings will now go beyond the originally promised target of 2026.
“We have no choice but to partially revise the plan. It is my deepest regret to face this challenging situation in the initial year of The Arc,” said Uchida.
He added that the brand would, like compatriot Suzuki, be monitoring the market before making a decision on EV release dates.
Nissan will look to strengthen its partnerships with the Renault Group, Mitsubishi and Honda in order to streamline its operations and cut costs.
Uchida will cut his salary by half, as will other top executives.
He said: “These turnaround measures do not imply that the company is shrinking. Nissan will restructure its business to become leaner and more resilient while also reorganising management to respond quickly and flexibly to changes in the business environment.
“We aim to enhance the competitiveness of our products, which are fundamental to our success, and set Nissan back on a path of growth.
"As a cohesive team, we are dedicated to working together to ensure the successful implementation of our plans."
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