Facing a multitude of challenges, Nissan is undergoing a major restructuring under CEO Makoto Uchida. The Japanese automaker is streamlining operations to go around a difficult economic climate.
This plan includes significant workforce reductions, production cuts, and a strategic shift in its alliance with Mitsubishi. This translates to a 6.7% reduction in Nissan’s global workforce, with approximately 9,000 jobs being eliminated across various regions.
Production capacity will also be trimmed by 20% to better align with current market demands.
Additionally, Nissan is selling a portion of its holdings in Mitsubishi, signaling a potential recalibration of their partnership within the Renault Nissan Mitsubishi Alliance.
While Nissan remains committed to its ambitious plan for 30 new or updated models, the rollout timeline might be adjusted.
Facing a brutal combination of slumping sales and dramatically reduced profit forecasts, Nissan is implementing a significant turnaround strategy.
The company’s financial results for the third quarter of 2024 were a stark wake up call, revealing a net loss of 9.3 billion yen ($61 million) a sharp reversal from the robust 191 billion yen ($1.25 billion) profit reported in the same period last year.
This financial setback has necessitated a revision of Nissan’s full year outlook. The company now anticipates a total revenue of 12.7 trillion yen ($83 billion) and has adjusted its projected vehicle sales downward to 3.4 million units, from the previously estimated 3.7 million.
