Nissan Motor has announced plans to cut 9,000 jobs and reduce production capacity by 20 per cent as it faces significant financial challenges in the first half of fiscal year 2024. With a decline of 79.1 billion yen in consolidated net revenue, Nissan’s revenue now stands at 5.98 trillion yen. The company’s swift response aims to improve operational efficiency and stabilise its financial position.
To further drive cost-saving measures, CEO Makoto Uchida has committed to a 50 per cent reduction in his monthly salary starting in November 2024. Other senior executives will also face pay cuts, as Nissan works to reduce fixed costs by 300 billion yen and variable costs by 100 billion yen, taking FY24 as a benchmark. These plans include optimising production expenses, reducing general costs, and streamlining research and development.
As part of its strategy, Nissan will deepen partnerships with Renault Group, Mitsubishi Motors, and Honda Motor Co., with new collaborations in technology and software development. A chief performance officer will also be appointed on 1st December to oversee the restructuring efforts.
The impact of these global cuts on Nissan’s India operations remains to be seen. Although the recent launch of the Nissan X-Trail and continued promotion of the Magnite model have revitalised interest, the brand has yet to establish a strong foothold in India. The full extent to which these changes will affect Nissan’s presence in the Indian market will become clear as restructuring plans progress.
