Nissan slashing 6% of global workforce

Nissan has announced that it will slash 9,000 jobs globally as part of several major cost-cutting measures amid slumping vehicle sales.

Driving the news: The announcement – which comes on the heels of Nissan reporting a loss of 9.3 billion yen ($60 million USD) for the last quarter through Sept. – is aimed at addressing the company’s struggles with surging production costs and high inventory. 

According to Cox Auto, Nissan dealerships in the U.S. currently have an average of 105 days’ supply of new vehicles — a significant backlog brought on by sluggish sales.

• The 9,000 jobs to be cut represent roughly 6% of Nissan’s 133,000 global workforce and are part of a broader plan to streamline operations. 

• Additionally, Nissan is planning to reduce its global vehicle production capacity by 20% to align with market demand.

Digging deeper: Nissan’s losses reveal the depths of financial strain on the automaker. 

• Nissan’s quarterly sales dropped to 2.9 trillion yen ($19 billion USD) this year from 3.1 trillion yen in 2023.

• The company reported fiscal first-half sales revenue of 5.98 trillion yen ($39 billion USD), decreasing 1% from the more than 6 trillion yen for sales revenue posted for the same period in 2023.

• Nissan’s profit from April to September totaled $19.2 billion yen ($124 million USD), a huge decline from the 296.2 billion yen reported for the same six-month period last year.

What’s next: CEO Makoto Uchida warned of Nissan’s “facing a severe situation” and outlined “urgent measures to turn around its performance.” These steps include cutting 300 billion yen in fixed costs and 100 billion yen in variable costs, aiming for a more sustainable and cash-generative structure by 2026. 

• Nissan also appointed Guillaume Cartier as chief performance officer to oversee global sales and profit, with additional executive adjustments expected in January.

Forecast: Amid its financial woes, Nissan has lowered its sales revenue outlook for the fiscal year through March 2025 to 12.7 trillion yen, down from an earlier projection of 14 trillion yen. The company aims to increase efficiency, targeting profitability even at reduced production volumes.

Why it matters: Nissan’s aggressive cost-cutting measures amid its financial challenges raise concerns about the future of the automaker’s U.S. retail operations, especially as high inventories and production cuts continue to weigh on profits. However, Nissan’s turnaround plan, supported by new models like the 2025 Nissan Murano and upcoming hybrid versions of the Rogue, could help drive renewed interest and strengthen its market position.

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