Japan's Nissan Motor plans 9,000 job cuts, slashes annual profit outlook by 70%

Nissan Motor Co. on Thursday announced a plan to cut 9,000 jobs globally and slashed its operating profit outlook for the year ending March by 70 percent.

The Japanese carmaker cut its fiscal 2024 operating profit forecast by 70 percent to 150 billion yen (US$975 million), compared to 500 billion yen forecast in July, on sales of 12.7 trillion yen, also downgraded from 14 trillion yen, as it continues to battle headwinds in major markets.

The company also said it will reduce production capacity by 20 percent, cut 9,000 jobs globally and sell back 10 percent worth of shares in its alliance partner Mitsubishi Motors, reducing its stake from the current 34 percent.

"Nissan will restructure its business to become leaner and more resilient, while also reorganizing management to respond quickly and flexibly to changes in the business environment," Nissan CEO Makoto Uchida said in a statement.

"These turnaround measures do not imply that the company is shrinking," he added.

The carmaker did not give a net profit forecast, saying it will depend on the ongoing turnaround efforts. It previously forecast an annual profit of 300 billion yen.

For the first half ended September, its net profit dropped 93.5 percent to 19.2 billion yen from the 296.2 billion yen earned over the six months last year, on sales of 5.98 trillion yen, down 1.3 percent.