Nissan is set to cut its global production capacity by 20 and reduce its workforce by 9,000 staff members in a bid to mitigate its current downturn in sales and profits.
Facing a severe situation, Nissan is taking urgent measures to turnaround its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market, Nissan said in a statement.
Nissan announced on Thursday that its consolidated operating profit decreased by 303.8 billion yen R34.9bn to 32.9bn yen R3.7bn in the first half of 2024.
Through this turnaround plan, Nissan aims to reduce its fixed costs by 300 billion yen R33.9 billion. It will also deepen its strategic partnerships with its Alliance partners Renault and Mitsubishi as well as Honda, with which it has a Memorandum of Understanding MOU to further explore vehicle electrification synergies.
In a bid to lead by example, Nissan CEO Makoto Uchida and other senior executives have agreed to take a 50 pay cut.
