Japanese automaker Nissan is cutting 9,000 jobs because its cars aren’t selling.

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Yuri Kageyama

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TOKYO (AP) — Nissan on Thursday reported a loss for its latest fiscal quarter as vehicle sales fell and costs and inventories rose, prompting the Japanese automaker to cut 9,000 jobs.

Chief Executive Makoto Uchida said he took a 50% pay cut to take responsibility for the dismal results while promising improvement would happen.

Nissan Motor Corp. announced a global workforce reduction of 9,000 people, or about 6% of more than 133,000 employees, and a plan to reduce global production capacity by 20%.

Uchida declined to say which regions would be affected by the cuts or provide details.

Nissan posted a loss of 9.3 billion yen ($60 million) in its most recent quarter through September, less than the 190.7 billion yen profit it posted in the same quarter a year ago.

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Quarterly sales fell to 2.9 trillion yen ($19 billion) from 3.1 trillion yen.

Uchida acknowledged that Nissan did not respond quickly or flexibly enough to global changes, including market tastes and rising raw material prices.

“I take this situation very seriously,” he told reporters. “Nissan is restructuring its business to become leaner and more sustainable.”

Nissan models have sold poorly in the United States, one of the world’s most lucrative auto markets and until recently dominated by Ford, Toyota and Tesla.

All aspects of Nissan’s operations and plans will be under review, Uchida said.

Nissan, based in the port city of Yokohama, reported first-half sales revenue of 5.98 trillion yen ($39 billion), down 1% from more than 6 trillion yen in the same period last year. .

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The company’s profit from April to September was 19.2 billion yen ($124 million), down sharply from the 296.2 billion yen it earned in the six months last year.

Nissan lowered its sales revenue forecast for the fiscal year to March 2025 to 12.7 trillion yen ($82 billion), from a previous forecast of 14 trillion yen ($91 billion).

He did not give a forecast for net profit, citing uncertainty. He promised to give a profit forecast as soon as possible. Nissan previously forecast annual profits of 300 billion yen ($1.9 billion).

Nissan now plans to sell 3.4 million vehicles worldwide in the fiscal year ending March 2025, up from a previously forecast of 3.65 million vehicles. The new number is about the same as what Nissan sold in the last fiscal year.

Nissan said it is appointing a chief performance officer tasked with making key decisions who will begin his job next month.

No dividends will be paid given the difficult results.

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Yuri Kageyama on X: https://x.com/yurikageyama

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