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The Japan-based automobile manufacturer Nissan announced that it plans to lay off 9,000 people globally and reduce its global production capacity by 20 percent.
In a statement from Nissan, it was noted that the company would restructure its operations to become leaner and more resilient.
The statement mentioned that the company aims to reduce its fixed costs by 300 billion yen (2 billion dollars) and its variable costs by 100 billion yen (650 million dollars), stating, "To achieve this, Nissan will reduce its global production capacity by 20 percent and its global workforce by 9,000 people." UNEXPECTED DECLINE IN COMPANY REVENUESNissan's Chief Executive Officer (CEO) Makoto Uchida stated, "These transformation measures do not mean the company is shrinking. While Nissan restructures its operations to become leaner and more resilient, it will also reshape its management to respond quickly and flexibly to changes in the business environment."
The Japanese automaker also lowered its profit forecast for the second time this year. The company expects its profit for the current fiscal year to drop from the previous 500 billion yen (3.2 billion dollars) to 150 billion yen (976 million dollars).
Nissan, Japan's third-largest automobile manufacturer, saw its global sales decline by 3.8 percent in the first half of the fiscal year, falling to 1.59 million units.
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