Nissan will cut about 6% of its global workforce of more than 133,000 employees. This comes after the company reported a significant loss for the final quarter of the financial year, Euronews reported.
Vehicle sales were down and costs and inventories were up.
CEO Makoto Uchida revealed that he will cut his salary by 50% to take responsibility for the poor results. Uchida promised that a turnaround is on the way, which will include a plan to reduce global production capacity by 20% in addition to staff cuts.
The CEO declined to say which regions would be affected by the cuts or give specifics. Nissan's main European plant is in Sunderland, UK, but it also has units in France, Belgium and Spain.
The company made a loss of 55.7 million euros in the quarter to September, a reversal of the 177.3 billion euros profit reported in the same quarter last year.
Quarterly sales fell to €17.6bn.
Uchida acknowledged that Nissan had not responded quickly and flexibly enough to global changes, including market tastes and soaring raw material costs.
"I take this situation very seriously," he told reporters. Nissan will restructure its business to become bigger and more sustainable."
Nissan's models have not sold well in the U.S., one of the world's most lucrative auto markets that has recently been dominated by Ford, Toyota and Tesla.
Nissan now expects to sell 3.4 million vehicles worldwide in the fiscal year ending March 2025, down from an earlier forecast of 3.65 million. The new number is about the same as Nissan sold in the same period of the previous year. | BGNES
