Nissan to cut 9k jobs, reduce CEO's monthly pay by 50% as company faces 'severe situation'

foxbusiness.com:

Nissan Motor Company senior vice president Jeremie Papin discusses Nissan’s growth efforts and focuses on a ‘breakthrough’ in EVs for consumers on 'The Big Money Show.'

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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Nissan is cutting jobs and its CEO's pay after results from the first-half of FY24 showed decreased consolidated net revenue and global sales volumes, and a 0.5% operating profit margin. (Artur Widak/NurPhoto via Getty Images)

President and CEO Makoto Uchida volunteered to immediately begin forfeiting half of his monthly compensation and other executive committee members also volunteered to take pay cuts.

«These turnaround measures do not imply that the company is shrinking. Nissan will restructure its business to become leaner and more