November 7, 2024 6:02am EST
Nissan to cut 9K jobs, reduce CEO's monthly pay by 50% as company faces 'severe situation'
CEO Makoto Uchida offered to immediately begin forfeiting half of his monthly compensation
By Elizabeth Pritchett FOXBusiness
Nissan Motor Company announced it will be "taking urgent measures" to turnaround its business model after results from the first-half of Fiscal Year 2024 showed decreased consolidated net revenue and global sales volumes, and an operating profit margin of 0.5%.
In a news release early Thursday morning, the company said it is "facing a severe situation" and laid out a plan to achieve "healthy growth," which includes reducing fixed costs by 300 billion yen (more than $1.9 billion) and variable costs by 100 billion yen ($649 million) while maintaining a healthy free cash flow.
In order to achieve this goal, Nissan said it will cut global production capacity by 20% and its global workforce by 9,000.
"The company is implementing various measures to lower selling, general, and administrative expenses, decrease the cost of goods sold, rationalize its asset portfolio, and prioritize capital expenditures and investments in research and development," Nissan said.
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https://www.foxbusiness.com/economy/nissan-cut-9k-jobs-reduce-ceos-monthly-pay-50-company-faces-severe-situation
