Japanese automaker Nissan has announced a restructuring plan to reduce production capacity and cut employees due to poor performance.
On the 7th, Makoto Uchida, Nissan's president, announced at the earnings briefing that the company will cut 20% of its global production capacity and reduce its workforce by 9,000 employees.
Although some factories are planned to be closed, the specific timing and targets were not disclosed.
Nissan's annual global production capacity was 7 million units in 2020 but has fallen to below 5 million units currently. With this restructuring cutting 20%, it will fall to less than 4 million units.
The 9,000 employees to be laid off represent 7% of Nissan's global workforce of 130,000.
To secure operating funds, Nissan plans to sell its 10% stake in Mitsubishi Motors to Mitsubishi Motors itself.
Nissan aims to reduce fixed costs by about 300 billion yen (approximately 2.7 trillion won) through this restructuring.
Nissan is struggling as sales of hybrid and electric vehicles lag in its key markets, the United States and China.
Nissan's net profit from April to September this year was 19.2 billion yen (about 17 billion won), down 94% compared to the same period last year.
President Uchida said, "We will rebuild with a lean business structure and return to a growth trajectory," adding that he will forgo half of his salary for the time being starting this month.
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