Nissan Motor has announced plans to cut 9,000 jobs and reduce its production capacity by 20 percent as it faces significant financial challenges in the first half of fiscal year 2024. The company reported a decline of 79.1 billion yen in consolidated net revenue, bringing its total revenue to 5.98 trillion yen. This swift response aims to enhance operational efficiency and stabilize its financial position.
To further promote cost-saving measures, CEO Makoto Uchida has committed to a 50 percent reduction in his monthly salary starting in November 2024. Other senior executives will also experience pay cuts as Nissan seeks to reduce fixed costs by 300 billion yen and variable costs by 100 billion yen, using fiscal year 2024 as a benchmark. These plans include optimizing production expenses, cutting general costs, and streamlining research and development.
As part of its strategy, Nissan will strengthen partnerships with Renault Group, Mitsubishi Motors, and Honda Motor Co., initiating new collaborations in technology and software development. A chief performance officer will be appointed on December 1st to oversee the restructuring efforts.
The impact of these global job cuts on Nissan’s operations in India is yet to be seen. Although the recent launch of the Nissan X-Trail and ongoing promotion of the Magnite model have generated renewed interest, the brand has not yet established a strong foothold in India. The full extent of how these changes will affect Nissan’s presence in the Indian market will be clearer as the restructuring plans unfold.
