Nissan's financial report blows up, announcing the layoff of 9,000 people and a 20% reduction in global production capacity | Financial Report Insights

Under the dual pressure of increasingly fierce competition in the global automotive market and declining sales, Nissan Motor Co., Ltd. announced a downward adjustment of its annual profit forecast and plans to lay off 9,000 employees, reducing production capacity by 20%. On Thursday, November 7, Nissan released its second-quarter financial report for the fiscal year 2025 (ending in March next year), showing that: Net sales were 2.99 trillion yen (USD 19.414 billion), lower than the estimated 3.05 trillion yen, a year-on-year decline of 5.08%. Net loss was 93.4 billion yen, far below the estimated profit of 49.07 billion yen; Operating profit was 31.91 billion yen, lower than the estimated 65.25 billion yen, a year-on-year decline of 84.67%. Nissan also significantly lowered its guidance for the current fiscal year, reducing its operating profit forecast from the previous estimate of 500 billion yen to 150 billion yen, which is less than half of analysts' average expectations. Net sales were also revised down from the previous estimate of 14.00 trillion yen to 12.70 trillion yen. In fact, as early as July this year, Nissan had already lowered its fiscal year guidance due to poor sales in regions such as Japan and North America, reducing its operating profit forecast for the current fiscal year from 600 billion yen to 500 billion yen. In June, Nissan also stated that due to declining sales, the company planned to suspend production at its factory in Changzhou. To improve profitability and reduce costs, the company announced that it would cut production capacity by 20%, lay off 9,000 employees globally, and sell its 10% stake in Mitsubishi Motors, reducing its shareholding from the current 34% to 24%. However, Nissan CEO Makoto Uchida stated: “These measures do not mean the company is 'shrinking'. Nissan will restructure its business to make it more streamlined and resilient, while restructuring the management team is aimed at responding quickly and flexibly to changes in the business environment .” Analysts pointed out that the company's product line lacks appeal, especially in light of weakening consumer demand for electric vehicles, making the sales outlook for the company's cars not optimistic. Earlier this year, Nissan lowered its production target for the current fiscal year by 50,000 units to 3.65 million units, but due to a nearly 4% decline in global sales to 1.6 million units from April to September, analysts believe this will still be a significant challenge