Nissan Motor Co. is implementing significant workforce reductions as part of a broader strategy to address declining sales and a steep drop in profits. The Japanese automaker announced on Thursday that approximately 9,000 jobs will be cut globally, with about 1,000 of those positions coming from its U.S. operations. This decision follows a troubling trend within the company, as it grapples with a challenging automotive market characterized by heightened competition and shifting consumer preferences.
As part of this restructuring effort, around 6% of Nissan’s U.S. workforce, which numbered approximately 17,000 as of March, has accepted early retirement packages. This initiative aims to streamline operations and reduce costs amid a backdrop of deteriorating financial performance. The company spokesperson confirmed that these early retirements are part of the broader job cuts that Nissan is undertaking worldwide.
Nissan’s recent announcement comes on the heels of a drastic revision to its annual profit outlook, which was slashed by 70% due to a significant slump in vehicle sales in key markets, particularly China and North America. The company reported that its operating profit for the first half of the fiscal year plummeted by 90%, falling from ¥336.7 billion ($2.3 billion) to just ¥32.9 billion ($214 million). This sharp decline in profitability has prompted Nissan to reevaluate its operational strategies and reduce its global manufacturing capacity by 20%.
The automaker’s net revenue for the six months ending September 30 dropped by approximately $730 million to $55 billion, reflecting a year-on-year decline in sales volumes, which totaled around 1.5 million units—a decrease of 7.8% from the previous year.
CEO Makoto Uchida emphasized that these measures are intended not to signal a contraction but rather to create a “leaner, more resilient business capable of swiftly adapting to changes in the market.” To facilitate this transition, Nissan has appointed Guillaume Cartier as chief performance officer effective December 1, tasked with overseeing sales and profitability.
In addition to workforce reductions, Nissan plans to divest approximately 10% of its stake in Mitsubishi Motors Corp., reducing its ownership from 34% to enhance liquidity and focus on core operations. This strategic move is part of a broader effort to shore up cash flow for research and development initiatives aimed at revitalizing Nissan’s product lineup.
The challenges facing Nissan are compounded by fierce competition in both domestic and international markets. In China, where sales have declined sharply—by nearly 14.3%—the company struggles against local manufacturers like BYD, which offer more competitively priced vehicles equipped with advanced technology. In the U.S., Nissan’s sales fell by about 3%, revealing an overextended dealership network that has not adapted quickly enough to changing consumer demands for hybrid vehicles.
Uchida acknowledged that Nissan has been slow to respond to the growing interest in hybrid models in the U.S., a market where rival automakers like Toyota have gained significant traction due to their diverse offerings in this segment.
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