Nissan Motor has unveiled a major restructuring plan to counteract a sharp downturn in its business, announcing 9,000 job cuts and a 20% reduction in global production capacity.

The move comes as the automaker grapples with declining sales in key markets such as China, North America, and Japan, leading to the second consecutive downgrade of its annual earnings forecast.

The company’s first-half financial results for the fiscal year reveal a 90% drop in operating profit, highlighting the pressing need for these drastic measures.

The Japanese automaker's CEO, Makoto Uchida, will have his monthly compensation reduced by 50 per cent, the company announced.

Nissan is targeting significant cost reductions as part of its turnaround strategy, aiming to cut fixed costs by 300 billion yen and variable costs by 100 billion yen.

These efforts are part of the company’s broader goal to restore profitability and adapt to the challenges posed by a rapidly changing automotive market.