TOKYO (AP) — Nissan reported Thursday a loss for the most recent fiscal quarter as its vehicle sales sank while costs and inventory ballooned, prompting the Japanese automaker to slash 9,000 jobs.
Chief Executive Makoto Uchida said he was taking a 50% pay cut to take responsibility for the dismal results, while promising that a turnaround was coming.
Nissan Motor Corp. announced a world workforce reduction of 9,000 people, or about 6% of its greater than 133,000 employees, in addition to a plan to slash global production capability by 20%.
Uchida declined to say which regions can be affected by the cuts or give specifics.
For the most recent quarter through September, Nissan racked up a 9.3 billion yen ($60 million) loss, a reversal from the 190.7 billion yen profit recorded the identical quarter a 12 months ago.
Quarterly sales fell to 2.9 trillion yen ($19 billion) from 3.1 trillion yen.
Uchida acknowledged Nissan didn’t respond quickly or flexibly enough to global changes, including market tastes and soaring raw material costs.
“I take this case very seriously,” he told reporters. “Nissan will restructure its business to develop into leaner and more resilient.”
Nissan models didn’t sell well within the U.S., probably the most lucrative auto markets on the earth that is recently been dominated by Ford, Toyota and Tesla.
All features of Nissan’s operations and plans can be under review, Uchida said.
Nissan, based within the port city of Yokohama, reported fiscal first half sales revenue of 5.98 trillion yen ($39 billion), edging down 1% from the greater than 6 trillion yen the identical period last 12 months.
Its April to September profit totaled 19.2 billion yen ($124 million), declining sharply from the 296.2 billion yen earned over the six months last 12 months.
Nissan lowered its sales revenue forecast for the fiscal 12 months through March 2025 to 12.7 trillion yen ($82 billion) from an earlier projection for 14 trillion yen ($91 billion).
It didn’t give a net profit forecast, citing uncertainty. It promised to offer a profit forecast as soon as possible. Earlier, Nissan was forecasting an annual profit of 300 billion yen ($1.9 billion).
Nissan now expects to sell 3.4 million vehicles around the globe within the fiscal 12 months ending in March 2025, down from an earlier projected 3.65 million vehicles. The brand new number is concerning the same that Nissan sold last fiscal 12 months.
Nissan said it’s appointing a chief performance officer tasked with turnaround decision-making, who will begin his job next month.
No dividends can be paid out, given the tough results.
___
Yuri Kageyama is on X: https://x.com/yurikageyama