Nissan cuts 9,000 jobs and goes into “emergency” mode

Nissan is in emergency mode to save itself, with the automaker cutting 9,000 jobs, cutting production capacity and selling its stake in Mitsubishi Motors. The CEO is also cutting his salary in half.

CEO Makoto Uchida, who took over the role during Carlos Ghosn’s epic meltdown, today unveiled a “radical” reform plan after announcing the company had swung to a net loss in its latest quarter. Reuters reports this.

Uchida “also lowered his full-year sales and operating profit forecast and canceled his previously set net profit target,” the report said, adding that he said it was too early to give an accurate forecast.

The reform package will include changes among some executives, such as giving Nissan Chairman Guillaume Cartier, who oversees Europe, Africa, the Middle East, India and Oceania, a promotion to the newly created chief performance officer.

In addition, Uchida said that starting this month he will take a 50% pay cut to help. (A Google search showed that he appears to earn approximately 657 million yen, or about $4.30 million annually.) Its global headcount of 133,580 will undergo a massive reduction of 9,000 people.

The new reform is designed to save the company $3 billion.

“The question is how to do it quickly and adapt to reality,” Uchida said at a news conference. “We cannot deny the fact that our sales plan has been stretched given the rapid changes in the markets.”

Uchida plans to cut global capacity by 20% to bring its worldwide production capacity to 5 million units. The automaker has 30 new or updated products in its lineup, and while it has no plans to cancel them, it will likely push back launch dates depending on market needs.

Of course, Nissan’s main problem is that its electric vehicles are pretty boring: all it offers are the Ariya and Leaf, neither of which are popular in the US. Nissan says it will continue to offer bi-directional vehicle-to-grid technology on its newly launched electric vehicles starting in 2026, joining alliance partner Renault in bringing the technology together.

Nissan is also selling nearly a third of its 34% stake in Mitsubishi, freeing up an additional $482.7 million. Back during Ghosn’s time, Nissan acquired a controlling 34% stake in Mitsubishi, but even after the sale, Nissan said it should remain Mitsubishi’s largest shareholder. Its alliance with Renault has committed about $5.2 billion to electric vehicle and battery development programs.

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