Nissan emergency self-rescue: global production capacity cuts by 20%, layoffs by 9000 people, CEO monthly salary cuts by 50%

According to foreign media reports, Nissan Motor announced that due to a decline in consolidated net revenue and global sales in the first half of fiscal year 2024, and an operating profit margin of only 0.

5%, the company plans to “take urgent measures” to reverse the business model.

, Nissan Motor said it is currently “facing a severe situation” and has formulated a plan to achieve “healthy growth”, including cutting fixed costs by 300 billion yen (US$1.

9 billion) and variable costs by 100 billion yen (US$649 million), while maintaining healthy free cash flow.

To achieve this goal, Nissan Motor plans to cut global production capacity by 20% and lay off 9000 jobs worldwide.

Nissan Motor said: “The company is implementing various measures to reduce sales and administrative expenses, reduce sales costs and optimize asset portfolios, and prioritizes capital expenditures and R & D investment.

” Makoto Uchida, president and CEO of Nissan Motor, volunteered to cut half of his monthly salary and proposed to start implementing the measure immediately, while other executive committee members also volunteered to cut wages.

Makoto Uchida said: “These measures to turn around a profit do not mean that the company is downsizing.

Nissan Motor will restructure its business to make it leaner and more resilient, while reorganizing the company’s management to respond quickly and flexibly to changes in the business environment.

We are committed to improving the competitiveness of our products and restoring Nissan’s earnings to growth.

As a cohesive team, we are committed to working together to ensure the smooth implementation of our plans.

“, Compared with the same period last year, Nissan Motor’s financial indicators fell in the first half of fiscal 2024, including net revenue, operating profit, operating profit margin and net profit, and its global sales also fell to 1.

6 million units.

, Nissan Motor said: “The company’s profitability has been affected by rising sales costs and inventory optimization efforts, particularly in the U.S. market, as well as increased manufacturing costs.

“, Nissan Motor plans to accelerate the launch of new energy vehicles in the China market, as well as plug-in hybrid vehicles and e-POWER technology in the U.S. market, while shortening the vehicle development cycle to 30 months.

Photo source: Nissan Motor.

At the same time, Nissan Motor will strengthen cooperation with Renault Group, Mitsubishi Motors and Honda Motors, and explore more strategic partnerships in the fields of technology and software services.

, Nissan Motor also said it will appoint a chief performance officer to be responsible for the company’s sales and profits, and will be in and start working before December 1.

, Return to the first electric network home page>,.

Link to this article: https://evcnd.com/nissan-emergency-self-rescue-global-production-capacity-cuts-by-20-layoffs-by-9000-people-ceo-monthly-salary-cuts-by-50/

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