Nissan slashes 9,000 jobs in restructuring and halves CEO's pay

TOKYO - Nissan Motor's struggle to cope with tougher car industry conditions and address weaknesses within its business has spiraled, leaving the automaker with no choice but to slash payroll, production, and its forecasts for this fiscal year.

The Japanese company will dismiss 9,000 workers globally and reduce capacity by a fifth, among other cost-cutting measures, after net income plummeted 94 percent in the first half. The job cuts amount to about 7 percent of its workforce.

The carmaker will also sell off some of its stake in Mitsubishi Motors after burning through 448.3 billion yen ($3.89 billion) in cash during the last six months.

Nissan is now expecting to produce about 3.2 million vehicles in the year ending in March, almost 7 percent fewer than the last fiscal year. The company also lowered its retail sales outlook to 3.4 million vehicles, paring forecasts for each of its major markets: North America, China, Japan, and Europe.

The calamitous results will prove costly for chief executive Makoto Uchida, who is forfeiting half his compensation starting in November.

The CEO told investors that Nissan has been affected "not only by external challenges, but also by our specific issues," alluding both to the breakneck rise of Chinese carmakers and Nissan setting overly ambitious sales targets.