Nissan has announced a series of emergency measures aimed at restructuring the company to manage financial challenges. The automaker plans to reduce its workforce by 9,000 positions and lower its production capacity worldwide. Additionally, Nissan will be selling a significant portion of its stake in Mitsubishi Motors.
CEO Makoto Uchida, who took over following the leadership crisis involving former CEO Carlos Ghosn, introduced a comprehensive reform plan. This comes after Nissan reported a net loss in the recent quarter, according to Reuters.
Financial Targets and Pay Cuts Adjusted
Alongside job cuts, Uchida announced a reduction in his own salary by 50% starting this month to support the company’s recovery efforts. He has also downgraded Nissan’s sales and profit forecasts for the year, refraining from providing an updated income target amid market uncertainties.
The reform strategy includes changes in executive roles, with Guillaume Cartier, current chairman overseeing markets in Europe, Africa, the Middle East, India, and Oceania, being promoted to chief performance officer. This role is newly created to help drive performance improvements across Nissan’s operations.
Cost-Saving and Capacity Cuts
The reform package aims to save Nissan approximately $3 billion. The automaker is reducing its global production capacity by 20%, aiming to stabilize production at around 5 million units annually. Uchida emphasized the importance of adapting quickly to market changes, noting that previous sales projections were overly optimistic.
Nissan’s electric vehicle lineup, currently comprising the Ariya and Leaf, will continue to be updated with new features, including vehicle-to-grid technology expected in 2026. As part of its financial restructuring, Nissan will sell nearly a third of its 34% stake in Mitsubishi, which is expected to raise approximately $482.7 million. Even with this sale, Nissan will maintain its position as Mitsubishi’s largest shareholder.
With inputs from agencies
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