Japan's Nissan Motor Co. announced that it would cut 9,000 jobs or even more, which is about 6% of the brand's workforce. The company announced this on November 7, announcing the reasons for these measures.
In addition, in response to declining sales, Nissan plans to reduce production capacity by 20%, reduce vehicle development time to 30 months and deepen cooperation with other partners.
The main partners of the Japanese brand are Renault Group and Mitsubishi Motors. Japan's third-largest automaker also cut its annual operating profit forecast by as much as 70% to 150 billion yen ($975 million).
This is its second downward revision after a 17% drop earlier this year. Nissan CEO Makoto Uchida agreed to take a 50% pay cut to take responsibility for the poor performance, but promised things would change soon.
Other members of the company's executive committee also agreed to take pay cuts. Nissan posted a loss of 9.3 billion yen ($60 million) in the last quarter alone.
That's up from a profit of 190.7 billion yen from the same quarter a year earlier. Nissan's global sales fell 3.8% to 1.59 million vehicles in the first half of the fiscal year, mainly due to a 14.3% decline in China.
US sales fell nearly 3% to about 449,000 vehicles. It is important to note that together these two markets account for almost half of Nissan's global sales by volume.