Nissan Motor Company today announced a 70% cut in its operating profit forecast for the fiscal year ending in March next year, citing ongoing challenges in its U.S. operations and plans to lay off 9,000 employees worldwide.
The company now anticipates an operating profit of 150 billion yen (approximately $975 million) for fiscal year 2024, down from the July forecast of 500 billion yen. The revenue forecast has also been adjusted from 14 trillion yen to 12.7 trillion yen.
Nissan stated that it cannot accurately forecast net profit at this time, as its future performance will depend on the ongoing recovery plan. Previously, the company had projected a net profit of 300 billion yen.
In the first half of the fiscal year ending in September, Nissan’s net profit dropped by 93.5% to 19.2 billion yen, with sales reaching 5.98 trillion yen, a decrease of 1.3% compared to the same period last year.
Additionally, Nissan announced plans to sell part of its stake in alliance partner Mitsubishi Motors Corporation.
