Nissan, the seventh-largest vehicle manufacturer globally by unit sales, has outlined plans to cut 9,000 jobs and reduce production by 20% as part of an effort to trim costs by JPY400 billion (USD2.6 billion) in the current fiscal year. The announcement follows a sharp decline in operating profit projections for FY2024, which have been revised downward by 70% amid a slowdown in global sales.

Nissan announces production and job cuts amid profit slump

Falling profits

On the 7th of November, Nissan released results for the six months ending the 30th of September 2024. The company reported a 5% year-on-year decline in revenue for the third quarter, while operating profit fell sharply, down 84.7% to JPY31.9 billion (USD208 million). Consequently, Nissan has reduced its operating profit forecast to JPY150 billion (USD977 million) for FY24, representing a 70% drop compared to earlier guidance.

Business reduction strategy

The company plans to cut fixed costs by JPY300 billion (USD1.95 billion) and variable costs by JPY100 billion (USD650 million) from FY2024 levels, aiming to …

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