Nissan has said it will cut global production capacity by 20% and reduce its workforce by 9,000 after failing to meet financial targets.

In its first half 2024 results, the firm’s net revenue decreased by 79.1bn yen (£400m) to 5.98tn yen, with profit margins falling to just 0.5%. Global sales volumes decreased year-on-year to 1.6 million units, while higher selling expenses and inventory optimisation efforts, particularly in the US, also impacted its profitability.

“Facing a severe situation, Nissan is taking urgent measures to turn around its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market,” the firm said.

“To achieve healthy growth in the future, the company will implement a structure to secure sustainable profitability and cash generation, even with projected annual sales of 3.5 million units by fiscal year 2026.”

As part of efforts to revitalise its fortunes, Nissan plans to bring forward the introduction of new energy vehicles...