Nissan Motor Corp. is eliminating 9,000 jobs as it prepares to cut global production 20% amid declining sales, the company announced Thursday.

The company is “taking urgent measures to turnaround its performance to create a leaner, more resilient business capable of swiftly adapting to changes in the market,” the automaker said in its H1 2024 earnings release. 

However, CEO Makoto Uchida noted the action is intended to streamline operations.

“These turnaround measures do not imply that the company is shrinking,” Uchida said.

To facilitate swift decision-making for the turnaround actions, Nissan on Thursday named Guillaume Cartier chief performance officer responsible for sales and profit, effective Dec. 1. Cartier chairs Nissan’s management committee for its Africa, Middle East, Indian, Europe and Oceania operations. 

The company did not specify where it would cut jobs, but noted the move will reduce administrative and operating expenses, while also boosting cash flow to shore up research and development. Nissan expects its total cost-savings strategy will save about 400 billion yen ($2.6 billion). 

Additionally, Nissan announced it is selling an estimated 149 million shares or about 10% of its ownership in Mitsubishi Motors Corp., cutting its stake to about 34%.  

Uchida is voluntarily giving up 50% of monthly compensation starting in November, Nissan said. Other executive committee members also are taking voluntary pay cuts.  

Nissan’s H1 operating profit plummeted 90% year-over-year from 336.7 billion yen to 32.9 billion yen. Declining global sales also contributed to its first-half YoY revenues falling 1.3% to just under 6 trillion yen, the company said. 

The automaker also reported a year-on-year global vehicle sales from April to September, which totaled 1.5 million units, down 7.8% from 1.7 million units.

Nissan expects its annual global sales to hit 3.5 million vehicles by fiscal year 2026, aided by strategic partnerships with Renault Group, Mitsubishi, and Honda Motor Co.   

“We [aim] to enhance the competitiveness of our products, which are fundamental to our success, and set Nissan back on a path of growth,” Uchida said.