Nissan Motor announced a series of cost-cutting measures on Thursday, including 9,000 job cuts and a 20% reduction in global production capacity, as it grapples with declining sales across key markets such as China, North America, and Japan.

The decision has cast uncertainty over the company’s 130,000 employees, with the automaker also slashing its annual earnings outlook for the second consecutive time this year. Nissan's operating profit dropped by 90% in the first half of the fiscal year, underscoring the urgency of these restructuring efforts.

In a bid to further cut costs, Nissan CEO Makoto Uchida will forfeit 50% of his monthly salary starting in November 2024, with other executive committee members also taking voluntary pay cuts.

These moves are part of the company’s broader strategy to reduce fixed costs by 300 billion yen and variable costs by 100 billion yen, as it seeks to stabilize and secure long-term profitability.

As global carmakers face shrinking demand in key markets and heightened competition from Chinese electric vehicle makers, Nissan’s efforts reflect a broader industry struggle to stay competitive in a rapidly evolving market.