Nissan to cut 9K jobs, cut CEO’s monthly salary by 50% as company faces “difficult conditions”
Nissan Motor Company senior vice president Jeremie Papin talks about Nissan’s growth efforts and focuses on ‘another success of EVs for consumers at ‘The Big Money Show.’
The Nissan Motor Company has announced that it will “take immediate steps” to change its business model after the results for the first half of the 2024 financial year showed a decrease in the combined income and global sales. yes, and an operating profit of 0.5%.
In a news release early Thursday morning, the company said it was “facing a difficult situation” and had drawn up a plan to achieve “healthy growth,” which included cutting fixed costs by billions of yen. 300 (more than $ 1.9 billion) and various expenses. 100 billion yen ($649 million) while maintaining free cash flow.
In order to achieve this goal, Nissan said that it will reduce global production by 20% and its global workforce by 9,000.
“The company uses a variety of measures to reduce selling, general and administrative costs, reduce the cost of goods sold, rationalize its assets, and prioritize capital expenditures and investments in research and development.” development,” said Nissan.
NISSAN TO RELEASE 30 NEW MODELS BY 2027, REDUCES EVS COSTS
Nissan is cutting the jobs and pay of its CEO after first-half FY 2024 results showed a decline in combined revenue and global sales, with a profit of 0.5%. (Artur Widak/NurPhoto via Getty Images)
President and CEO Makoto Uchida offered to immediately lose half of his monthly compensation, and other executive committee members also offered to take pay cuts.
“These transformational steps do not mean that the company is slowing down. Nissan will rebuild its business to be more stable and sustainable, while reorganizing the system to respond quickly and flexibly. -flexible to changes in the business environment,” said Uchida. “We [can] we are committed to strengthening the competitiveness of our products, which are essential to our success, and putting Nissan back on the path to growth. As a united team, we are committed to working together to ensure the successful implementation of our plans.”
President of Nissan Motor Co. Director and CEO Makoto Uchida will cut 50% of his monthly salary in order to help the company achieve its financial goals. (Kiyoshi Ota/Bloomberg via Getty Images)
Nissan saw a decline in every segment during the first half of FY 2024 compared to the same period in 2023. The metrics include: gross profit, operating profit, operating margin, profit common and income. Global sales figures also decreased year-on-year to 1.6 million units.
“Profits were affected by higher selling costs and product development efforts, particularly in the US, as well as increased monozukuri costs,” the company said.
THE PRICE DIFFERENCE BETWEEN NEW AND USED CARS ALWAYS WINS
The company said it plans to continue the production of new energy vehicles in China and plug-in hybrids and e-POWER in the US, as well as reducing the development time of vehicles to 30 months.
Nissan’s main goal is to “create a simpler, more sustainable business that can quickly adapt to changes in the market.”
The Nissan Leaf is one of the company’s two electric vehicles. (Bryan Mitchell/Getty Images)
It will also leverage and deepen partnerships with Renault Group, Mitsubishi Motors Corporation and Honda Motor Company while “exploring strategic partnerships in the areas of technology and software services.”
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
Nissan also said a chief operating officer responsible for sales and profits will be appointed and take up the role on December 1.
#Nissan #cut #jobs #cut #CEOs #monthly #salary #company #faces #difficult #conditions