Nissan, the renowned Japanese automaker, is facing significant financial challenges and has announced plans to cut 9,000 jobs globally.
This move comes after a sharp 93% decline in its net profit for the first half of the year, largely due to weak sales in North America.
The company has also revised its sales forecast down to ¥12.7 trillion, a decrease from its earlier estimate of ¥14 trillion.
CEO Makoto Uchida highlighted the company’s difficulty in competing against the rapidly growing electric vehicle sector, particularly in China, where local companies are gaining ground.
In response, Nissan plans to reduce its global production by 20% and shift focus to a more streamlined and adaptable operation.
To further address the downturn, Uchida and other executives have agreed to voluntarily take a pay cut.
Additionally, the company intends to reduce its stake in Mitsubishi Motors from 34% to 24% by selling shares back to the automaker.
 Nissan has not provided a specific profit forecast, pending ongoing evaluations of costs related to its restructuring efforts.
This restructuring follows a turbulent period for Nissan, marked by the controversial arrest of former CEO Carlos Ghosn in 2018 and his subsequent escape from Japan.
The company is now focused on rebuilding its brand and improving its performance in key markets like North America.
