Nissan cuts 9,000 jobs and sells Mitsubishi shares

The Japanese company's CEO, Makoto Uchida, has announced staff cuts in response to the fall in sales in the last quarter.

By: Gianmarco Gori

Nov 9, 2024 at 4:14am ET

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The crisis in the automotive industry is sparing no one, and it is also affecting Japan. At a press conference on its results for the last quarter, Nissan CEO, Makoto Uchida, announced that the company was preparing to reduce its production and the number of its employees. Among the other decisions announced was the sale of 10.02% of the shares in Mitsubishi Motors.

A deep crisis, but one that can be resolved

According to a report by Automotive News Europe, the Japanese carmaker's CEO explained that the crisis in which the company currently finds itself was caused by sales results over the last period with figures down sharply, generating an 85% fall in operating profit over the last quarter.

Nissan Patrol, the model for the United States

Photos of : Nissan

In order to act quickly, the company's number one announced 9,000 job cuts and savings of around $3 billion.

At the same time, Guillaume Cartier, President of the AMIEO (Africa, Middle East, India, Europe and Oceania) region, has seen his responsibilities extended with the additional role of Chief Performance Officer (CPO) to oversee the Japan/ASEAN, AMIEO and Americas regions, as well as global sales and aftersales.

Nissan Ariya Nismo

Photos of : Nissan

Overall, Uchida's goal, Automotive News Europe reports, is to reduce fixed costs by 300 billion yen ($2.12 billion) and variable costs by 100 billion yen ($703.2 million), compared to the fiscal year ending 31 March, in accordance with Japanese law.

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Sale of Mitsubishi shares

Nissan will sell up to 149,028,300 shares (approximately 10.02% of Mitsubishi Motors Corporation, MMC) at today's closing price (including the final special quotation) of 460.6 yen through the Tokyo Stock Exchange OTC Share Repurchase Market at 8:45 a.m. on November 8, 2024.

"This transaction will support MMC's management strategy and enhance Nissan's financial flexibility, paving the way for future growth opportunities," the Nissan statement said. "Nissan and MMC will continue their collaborative efforts to drive innovation and deliver exceptional value to their stakeholders. Together, the Alliance companies are actively engaged in value-creating projects that respond to evolving industry trends."