Japanese automaker Nissan revealed plans to lay off 29,200 employees and lower its sales forecast for the fiscal year 2024-25, viewing this as part of necessary actions to address “a severe situation,” according to news agency AFP on Thursday, November 7. The company stated it will reduce global production capacity by 20 percent and decrease its global workforce by 9,000. Nissan’s net profits fell by 93 percent in the first half of the year, as reported by CEO Makoto Uchida, due to poor sales in the North American market. The company now anticipates net sales of 12.7 trillion yen ($80 billion), a decrease from the previously predicted 14 trillion yen. In an official statement, Nissan said, “Confronted with a challenging situation, we are implementing urgent measures to improve our performance and build a more streamlined and resilient business that can quickly adjust to market changes.” Additionally, the 2024 Nissan Magnite has been launched in India, priced at ₹5.99 lakhs, featuring new updates. Uchida will voluntarily give up 50 percent of his monthly salary starting in November 2024, and other members of the executive committee will also voluntarily reduce their pay, according to the statement. Nissan and its Japanese competitors are having difficulty competing in China, where rapidly growing electric vehicle companies supported by the government are advancing quickly. “Net income will be determined after an ongoing review of the costs required for the planned turnaround efforts,” Uchida stated, as the company did not provide a net profit forecast on Thursday. Nissan’s main vehicle models are not performing as well in North America as they once did. “From the cost perspective and the brand-strength perspective, we will work on rebuilding our brand in America,” Uchida mentioned in the report. In addition to other initiatives, Nissan plans to decrease its share in Mitsubishi Motors by selling shares back to the company. The stake in Mitsubishi will decrease to almost 24 percent from 34 percent. Additionally, Nissan and Honda are considering a possible partnership for electric vehicles, according to a report. Nissan has experienced a tough ten years, highlighted by the surprising arrest of former CEO Carlos Ghosn in 2018. Ghosn later escaped bail and left Japan hidden inside a music equipment box. He is still a fugitive in Lebanon and denies the charges against him. He stated that he left Japan due to his doubts about receiving a fair trial. When questioned about Donald Trump’s win in the US presidential election, Uchida mentioned that Nissan was “receiving various information, like tariffs, but it’s not only us,” according to the agency report. “We will be lobbying, and our medium- to long-term plans should stay on track, but we will operate our business while closely observing the situation,” he informed the agency. Stay updated on Business News, Corporate news, Breaking News Events, and the Latest News Updates on Live Mint. Download The Mint News App for daily market updates. Nissan, the Japanese automaker, is laying off 9,000 employees and lowering its sales projections for the current fiscal year.
