Nissan Motor Co. has announced that Chief Financial Officer Stephen Ma will step down from his position, signaling a continuation of the leadership shake-up at a time when the Japanese carmaker is facing significant financial and operational challenges. This change comes after a tumultuous period for Nissan, which has been grappling with management upheaval and a series of strategic missteps.

Management Changes Amid Restructuring

Stephen Ma, who has been with Nissan since 1996, has held various roles in North America, China, and Japan. He was appointed CFO in December 2019 alongside CEO Makoto Uchida and former Chief Operating Officer Ashwani Gupta, who left 17 months ago. While the exact details of Ma’s departure remain unclear, sources suggest it could be a demotion or resignation. The company has not officially commented on the situation.

Ma's stepping down follows a significant restructuring plan announced by Nissan, which includes cutting 9,000 jobs and reducing manufacturing capacity by 20%. These moves are part of Nissan’s efforts to reduce costs and streamline operations in response to declining profitability. The company now expects a sharp decline in operating income, with a forecast of ¥150 billion ($1 billion) for the fiscal year ending March, which is a 70% decrease from its previous forecast.

Financial Struggles and Market Decline

The challenges facing Nissan are compounded by the company’s outdated product lineup and a lack of competitive offerings, particularly in North America, where there is a notable absence of hybrid models. As a result, Nissan has struggled to maintain its market position, and its market capitalization has dwindled significantly from its peak of nearly ¥6 trillion in 2015. It is now ranked as Japan’s fifth-largest carmaker, trailing behind Toyota, Honda, Suzuki, and Subaru.

In addition to the financial difficulties, Nissan has attracted the attention of Effissimo Capital Management Pte., an activist investor in Japan, which has been pushing for strategic changes. Although it has been five years since the dramatic arrest and ouster of former chairman Carlos Ghosn, Nissan continues to struggle with its internal leadership and broader corporate strategy.

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CEO Makoto Uchida as the Sole Executive Leader

With Stephen Ma’s departure, CEO Makoto Uchida will remain as the only top-level executive at Nissan, facing a difficult road ahead. Uchida has already been under pressure to navigate Nissan through a period of significant transformation, and now, with mounting challenges in profitability, production, and market share, his leadership will be closely scrutinized in the coming months.

Nissan's decision to reduce jobs and manufacturing capacity is seen as an attempt to regain control over its declining fortunes. However, the outcome of these efforts will largely depend on how well the company can reinvent itself in an increasingly competitive and evolving automotive market. For now, Nissan’s leadership transition, combined with these strategic cuts, signals a pivotal moment for the future of the company.

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