TOKYO (Reuters) – Japan’s Nissan Motor on Thursday announced various cost saving measures including 9,000 job cuts and slashed its annual outlook for the second straight time this year, as it continues to battle headwinds in major markets such as China.
The automaker also said it would cut global production capacity by 20%.
“These turnaround measures do not imply that the company is shrinking,” CEO Makoto Uchida said in an earnings statement.
“Nissan will restructure its business to become leaner and more resilient, while also reorganizing management to respond quickly and flexibly to changes in the business environment.”
The company cut its operating profit forecast for the financial year to 150 billion yen ($974.98 million) from 500 billion yen.
Operating profit for the July-September period totalled 32.9 billion yen, 85% lower than the 208.1 billion yen in the same period a year earlier. That compared to an average estimate of 66.8 billion yen in a poll of eight analysts by LSEG.
($1 = 153.8500 yen)
(Reporting by Daniel Leussink; Editing by David Dolan and Christopher Cushing)