Nissan axing 9,000 jobs, CEO cuts his own pay as US sales slump

Core Insights - Nissan Motor plans to cut 9,000 jobs, representing 6.7% of its global workforce, and reduce its global manufacturing capacity by 20% to save $2.6 billion in the current fiscal year due to declining sales in China and the US [1][4][5] - The company has revised its annual profit outlook down by 70% to 150 billion yen ($975 million), marking the second forecast reduction this year [2] - CEO Makoto Uchida will forfeit 50% of his monthly compensation, and other executives will also take pay cuts as part of the restructuring efforts [3][7] Financial Performance - Nissan's operating profit for the July-September quarter plummeted 85% to 31.9 billion yen, significantly below the consensus estimate of 66.8 billion yen [9] - Global sales decreased by 3.8% to 1.59 million vehicles in the first half of the financial year, with a notable 14.3% drop in China and nearly 3% decline in the US [10] Market Challenges - The company is struggling in the US market due to a lack of a competitive lineup of hybrid vehicles, unlike its rival Toyota, which has seen increased demand for gasoline-petrol hybrids [3][10] - Nissan's sales in the US fell approximately 3% in the latest quarter, contributing to the overall sales decline [8][10] Strategic Adjustments - Nissan plans to reduce vehicle development lead time to 30 months and enhance collaboration with partners, including Renault and Mitsubishi Motors [7] - The company is also considering selling up to 10% of its stake in Mitsubishi Motors to raise approximately 68.6 billion yen ($445.45 million) [8]