Nissan in trouble! 9000 employees will be laid off, CEO will get 50% less salary

Nissan in trouble! 9000 employees will be laid off, CEO will get 50% less salary

by with No Comment Car Review

New Delhi. Japan's third largest automobile company Nissan Motor Corp has decided to make major changes in its global operations. The company has announced the layoff of 9,000 employees and a 20 percent reduction in production capacity, so that it can regain its lost share in the electric and hybrid vehicle market. CEO Makoto Uchida will also take 50 percent less salary.

Nissan suffered a loss of 9.3 billion yen (about $60 million) in the September quarter, whereas the company had a profit of 190.7 billion yen in the same quarter a year ago. The company said that these restructuring steps have been taken after an income decline of 94% in the first half.

Will reduce stake in this company
Nissan has burned 448.3 billion euros (about $2.9 billion) of cash in recent months and now plans to sell some of its stake in Mitsubishi Motors Corp. The company's operating income fell 70% short of its forecast, while its revenue outlook was also cut by more than 9%.

Why did the company's problems increase?
Nissan President and CEO Makoto Uchida said that the purpose of these changes is to make the company more flexible and responsive to rapidly changing trends in the market. He said that along with external challenges, the company is also grappling with its own internal issues, including the growing presence of local companies in China and overly ambitious sales targets.

In China, companies like BYD have taken advantage of the surge in demand for electric vehicles, while in America the popularity of hybrid vehicles is increasing. Under these changes, Nissan will increase investment in its EV lineup in China and expand hybrid vehicles in the US. Additionally, the company has also decided to make production more efficient and cut costs by taking advantage of its partnership with Honda.

Through these major changes, Nissan aims to become more competitive in the global automotive market. However, Uchida acknowledged that the road to the future is not easy as the auto industry is undergoing rapid change.

Tags: auto news

FIRST PUBLISHED: November 9, 2024, 19:47 IST

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Nissan shares fall after plans to cut jobs, production

Nissan shares fall after plans to cut jobs, production

by with No Comment car updates

By: reuters
, updated on: 09 November 2024, 10:05 am

Nissan is facing criticism for its hybrid strategy, with analysts highlighting its over-reliance on EVs. After huge job cuts and profit forecasts

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Nissan on Thursday cut its full-year operating profit forecast by 70 percent. The automaker completely scrapped its net forecast due to restructuring, which will cut costs by 400 billion yen. (Reuters)

Nissan Motor shares fell 6 percent in Tokyo trading on Friday, a day after the Japanese automaker said it would cut 9,000 jobs and 20 percent of its manufacturing capacity as it struggles with sales in China and the United States. Is struggling.

The stock posted its biggest one-day price drop since August, ending the session at 385.2 yen, just above a four-year low.

Japan's third-largest automaker on Thursday slashed its full-year operating profit forecast by 70 percent and completely scrapped its net forecast due to restructuring, which it said would cost the company in the fiscal year through March. There will be a cut of 400 billion yen ($2.61 billion). Ending.

Also read: Tesla was told to tone down enthusiasm for robotaxi, months before US investigation

Like many global automakers, Nissan is struggling in China where BYD and other domestic rivals are winning market share with affordable electric vehicles and petrol-electric hybrids equipped with advanced software.

Nissan has also been challenged in the US, where it has a shortage of hybrid vehicles because of the huge demand for that type of vehicle.

CEO Makoto Uchida said Thursday that Nissan did not expect the sudden popularity of hybrids in the US and that demand for modified versions of the core model was not as strong as expected.

Also read: Toyota COO criticizes US EV policies, calls for organic growth without mandate

Nissan's restructuring is the latest chapter in a long-running effort to revive its business, which has never fully recovered after ousting former Chairman Carlos Ghosn in 2018 and cutting its partnership with Renault.

On Friday, Economy, Trade and Industry Minister Yoji Muto declined to comment when asked by reporters for his views on possible government support for Nissan.

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Tokai Tokyo Intelligence Laboratory analyst Seiji Sugiura placed much of the blame for Nissan's U.S. hybrid situation on management, saying it expected to sell primarily new EVs and conventionally powered models.

Sugiura said, “The company released its mid-term plan this spring, but in the end it made no sense. I think their understanding of the situation is completely wrong.”

Nissan's mid-term plan announced in March included 30 new models over the next three years, increasing global sales to 1 million vehicles, increasing operating profit margins to more than 6 percent by the end of fiscal 2027 and total shareholder returns of 30 percent. It became more. ,

($1 = 153.2000 yen)

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First publication date: 09 November 2024, 10:05 am IST

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