Nissan To Cut 9,000 Jobs Amid Sluggish China And U.S. Sales

Nissan Motor announced it will cut 9,000 jobs and reduce global manufacturing capacity by 20% to lower costs by $2.6 billion in the current fiscal year due to declining sales in China and the US, Daniel Leussink reported for Reuters.

Nissan underestimated the demand for hybrids.

This highlights Nissan's vulnerability as Japan's third-largest automaker continues to struggle following the 2018 departure of former chairman Carlos Ghosn and the scaling back of its alliance with Renault SA.

Nissan also cut its annual profit outlook by 70% to 150 billion yen ($975 million), marking the second downward revision this year.

In China, Nissan faces stiff competition from domestic manufacturers like BYD, which dominate the market with affordable EVs and hybrids. Nissan's challenges are further compounded in the US, where its lack of hybrid models contrasts sharply with Toyota's successful hybrid lineup.

CEO Makoto Uchida admitted that Nissan underestimated the demand for hybrids, stating, “We didn’t foresee HEVs ramping up this rapidly.” He also noted that efforts to update core models were met with implementation challenges.