Tokyo: As the automaker tries to cut expenses by $2.6 billion in the current fiscal year amid a decline in sales in China and the US, Nissan Motor announced Thursday that it will eliminate 9,000 positions and 20% of its global manufacturing capacity.
On Thursday, Nissan lowered its annual profit expectation for the second time this year, cutting it by 70% to 150 billion yen ($975 million). Like many Western automakers, it is having trouble in China, where local producers like BYD are capturing market share with reasonably priced, technologically superior EVs and hybrids.
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However, the lack of a respectable lineup of hybrid vehicles in the US may be Nissan’s biggest issue. Makoto Uchida, the CEO of Nissan, stated at a news conference that the company misjudged the demand for hybrids in the US.
The corporation, based in Yokohama, intends to lay off 9,000 workers, or 6.7% of its 133,580 total global workforce.