Nissan Motor Co. unveiled sweeping cost reductions after reporting a dramatic decline in first-half operating profit, highlighting the automaker’s struggles in key markets.
Operating profit dropped 90% to 32.9 billion yen ($215 million) in the six months through September, while revenue slipped to 5.98 trillion yen. The company sharply cut its full-year profit forecast to 150 billion yen from 500 billion yen previously.
The Japanese automaker plans to eliminate 9,000 positions globally and reduce production capacity by 20% as part of a restructuring aimed at saving 400 billion yen annually compared to fiscal 2024 levels. CEO Makoto Uchida will take a 50% pay cut starting this month.
Facing inventory challenges in the U.S. and rising manufacturing costs, Nissan suspended its interim dividend and withdrew its year-end payout forecast. The company’s global sales fell to 1.6 million vehicles during the period.
The automaker aims to accelerate its electric vehicle push in China while expanding hybrid offerings in the U.S. market. It’s also seeking closer collaboration with partners Renault, Mitsubishi, and Honda on technology development to reduce costs.
A new Chief Performance Officer role will be created next month to oversee the turnaround efforts, which include cutting vehicle development time to 30 months.
