Japanese automaker Nissan cuts 9,000 jobs as its vehicles fail to sell

TOKYO -- TOKYO (AP) — Nissan reported Thursday a nonaccomplishment for nan latest fiscal 4th arsenic its conveyance income sank while costs and inventory ballooned, prompting nan Japanese automaker to slash 9,000 jobs.

Chief Executive Makoto Uchida said he was taking a 50% salary trim to return work for nan dismal results, while promising that a turnaround was coming.

Nissan Motor Corp. announced a world workforce simplification of 9,000 people, aliases astir 6% of its much than 133,000 employees, arsenic good arsenic a scheme to slash world accumulation capacity by 20%.

Uchida declined to opportunity which regions will beryllium affected by nan cuts aliases springiness specifics.

For nan latest 4th done September, Nissan racked up a 9.3 cardinal yen ($60 million) loss, a reversal from nan 190.7 cardinal yen profit recorded nan aforesaid 4th a twelvemonth ago.

Quarterly income fell to 2.9 trillion yen ($19 billion) from 3.1 trillion yen.

Uchida acknowledged Nissan didn’t respond quickly aliases flexibly capable to world changes, including marketplace tastes and soaring earthy worldly costs.

“I return this business very seriously,” he told reporters. “Nissan will restructure its business to go leaner and much resilient.”

Nissan models did not waste good successful nan U.S., 1 of nan astir lucrative car markets successful nan world that's precocious been dominated by Ford, Toyota and Tesla.

All aspects of Nissan’s operations and plans will beryllium nether review, Uchida said.

Nissan, based successful nan larboard metropolis of Yokohama, reported fiscal first half income gross of 5.98 trillion yen ($39 billion), edging down 1% from nan much than 6 trillion yen nan aforesaid play past year.

Its April to September profit totaled 19.2 cardinal yen ($124 million), declining sharply from nan 296.2 cardinal yen earned complete nan six months past year.

Nissan lowered its income gross forecast for nan fiscal twelvemonth done March 2025 to 12.7 trillion yen ($82 billion) from an earlier projection for 14 trillion yen ($91 billion).

It did not springiness a nett profit forecast, citing uncertainty. It promised to springiness a profit forecast arsenic soon arsenic possible. Earlier, Nissan was forecasting an yearly profit of 300 cardinal yen ($1.9 billion).

Nissan now expects to waste 3.4 cardinal vehicles astir nan world successful nan fiscal twelvemonth ending successful March 2025, down from an earlier projected 3.65 cardinal vehicles. The caller number is astir nan aforesaid that Nissan sold past fiscal year.

Nissan said it’s appointing a main capacity serviceman tasked pinch turnaround decision-making, who will statesman his occupation adjacent month.

No dividends will beryllium paid out, fixed nan harsh results.

___

Yuri Kageyama is connected X: https://x.com/yurikageyama