Nissan is cutting production and will lay off 9,000 people to save the company

News from Japan is worrying: one of the best-known brands, and one considered among the most solid in the automotive world, . Nissan has just proposed a considerable reduction in its production, with all the consequences this will bring for workers and the company as a whole. In principle, Nissan announces a 20% decrease in production worldwide.

This will mean the layoff of at least 9,000 people worldwide and a setback in the results the brand had forecast. The reason lies in the poor results obtained in the report from April to September. This report records a 93.5% drop in net profits compared with the same period last year.

The cuts have been presented, but they have not yet come into force. It is not known when these production reductions and layoffs will begin, so the situation does not change for now. Nissan will carry out a study in each region to determine the most appropriate level of cuts and layoffs.

But it is not only plant workers who will be affected. The top management will also undergo changes. Executives will be replaced and, in addition, executive salaries will be cut. According to the company’s CEO, Makoto Uchida, this will not put the company at risk; instead, it will turn it into a leaner and more efficient company.

Uchida has also acknowledged that Nissan “has not been able to adapt to the times” nor “fast enough“. Another measure Nissan will take is to reduce its investment in Mitsubishi, in which the company holds a stake. It will sell part of its stake to ease its spending and generate a quick and effective capital inflow.

In Spain, Nissan operates a spare parts manufacturing plant, so it is one of the operations that could be affected by these investment and staffing cuts.