Nissan lays off 9,000 employees, profit halved, where is the auto giant headed?

Nissan is in trouble, announcing massive layoffs and cutbacks, and the Japanese auto giant significantly lowered its annual profit forecast on Thursday, reducing its 2024 fiscal year revenue guide from 500 billion yen to 150 billion yen, far below market expectations. In response to the continuous decline in sales in major markets, Nissan has decided to take a series of aggressive measures: laying off 9,000 people worldwide, cut production by 20%, and sell some shares of Mitsubishi Motors. These measures highlight the immense pressure Nissan is facing in the increasingly fierce competition in the auto market.

Nissan's predicament is not alone among Japanese auto brands, but its rate of decline is worrisome. The rise of electric vehicle brands like Tesla and BYD, as well as the decline in the traditional gasoline car market, have dealt a huge blow to Nissan.

It seems that the reform plan of Nissan's CEO Makoto Uchida has failed to reverse Nissan's decline. Despite his attempts to boost company performance through expanding the electric vehicle product line, establishing new partnership relations, and other measures, the effects are not significant. Analysts pointed out that Nissan's new models lack competitiveness, and hybrid models also fail to meet market demand.

China is an important battlefield for Nissan, but its performance has been disappointing. The decline in sales forced Nissan to shut down its Changzhou factory. At the same time, Nissan's global sales continue to decline, making it increasingly difficult to achieve the production targets set at the beginning of the year.