Nissan is in trouble, and in order to save what can be saved, the company is selling its share in Mitsubishi Motors, but also reducing production capacity, which puts 9,000 jobs in question.

CEO Makoto Uchida cut his salary by 50% and presented a reform plan to pull the company out of the abyss. That includes reshuffles of some officials, including Nissan president Guillaume Cartier who has been moved to the position of executive director of performance. He lowered forecasts related to sales and operating profit for the whole year, but also the previously set target for net income.

Nissan currently has 133,580 employees, and it is predicted that the planned reforms and cutting 9,000 jobs would save the company three billion dollars. The intention is to reduce global capacity by 20 percent, so that global production capacity worldwide amounts to 5 million cars. Nissan has 30 new or refreshed models in the lineup and has no plans to phase them out, but is likely to shift launch dates depending on market needs.

Also, the company announced the sale of 1/3 of its 34 percent stake in Mitsubishi, but even after the sale it should remain the largest shareholder.

Source: Reuters