The company also cut its operating profit forecasts for 2024 by 70%. It was the second time this year that the firm has lowered its outlook.
“These turnaround measures do not imply that the company is shrinking,” said Nissan’s chief executive Makoto Uchida.
“Nissan will restructure its business to become leaner and more resilient.”
The company said Mr Uchida’s monthly salary is being cut by half and that other senior executives will also take pay cuts.
Nissan’s shares were trading more than 6% lower on Friday morning in Tokyo.
Growing competition in China has led to falling prices, which has left many foreign car makers there struggling to compete with local firms like BYD.
The firm is also struggling in the US, where inflation and high interest rates has hit sales of new vehicles.
Lower demand has led car makers to cut prices, which has dented their profits.
In November last year, Nissan and its partners announced a £2bn ($2.6bn) plan to build three electric car models at its Sunderland factory.
The firm said it will build electric Qashqai and Juke models at the plant alongside the next generation of the electric Leaf, which is already produced there.
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