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Nissan Cuts 9,000 Jobs Amidst Financial Struggles
Nissan announces 9,000 job cuts and a 20% reduction in production capacity due to weak performance in the US and China.
English
Japan
Labour MarketJob CutsAuto IndustryFinancial CrisisEconomic DownturnGlobal Business
Nissan Motor Co.Mitsubishi Motors Corp.Kyodo News
Makoto Uchida
- What are the main reasons behind Nissan's poor performance?
- The job cuts and production reduction are in response to struggling businesses in the U.S. and China, where increased incentives and competition with affordable EVs have hurt sales.
- How many jobs will Nissan cut and what percentage of its workforce does this represent?
- Nissan Motor Co. will cut 9,000 jobs (7% of its workforce) and reduce global production capacity by 20%, down to 4 million vehicles.
- What factors contributed to the company's poor performance in the US and China markets?
- The company's poor performance is attributed to increased incentives paid to US dealerships due to intensified competition and weak sales in China due to affordable EVs from local rivals.
- What were Nissan's financial results for the fiscal half ended September, and how were the full-year forecasts revised?
- Nissan's net profit dropped 93.5% to \$125 million in the fiscal half ended September, leading to a revised full-year operating profit forecast of 150 billion yen (down 70% from the July forecast).
- What actions will Nissan's CEO take and what other measures will the company implement to address its financial situation?
- Nissan CEO Makoto Uchida will take a 50% pay cut, and the company will sell up to 10% of its stake in Mitsubishi Motors to improve its financial health.