Nissan Motor Co. plans to lay off 9,000 workers and reduce its global manufacturing capacity by 20 percent, according to Reuters. The Japanese automaker’s restructuring strategy is aimed at trimming $2.6 billion in costs during the current fiscal year, with significant cuts affecting not only assembly line workers but also top executives. Makoto Uchida, Nissan’s Chief Executive Officer, will see a 50 percent reduction in his monthly compensation, as reported by The New York Times.
Facing declining sales and profitability challenges, Nissan has revised its annual profit forecast down by 70 percent. In the first half of the fiscal year, global sales for Nissan fell by 3.8 percent, with a notable 14.3 percent drop in China and a 3 percent decrease in the United States. The company attributes part of its struggles to a limited lineup of hybrid vehicles, which have impacted its competitiveness in key markets such as China and the US.
As part of its recovery plan, Nissan has announced “urgent measures” to revamp its performance. These measures include the introduction of new energy-efficient vehicles to the Chinese market and expanded offerings of plug-in hybrids and e-POWER vehicles in the US. Currently, Nissan’s EV lineup includes the Leaf and the Ariya, marking an early but narrow presence in the electric vehicle space.
Featured image courtesy of The Drive
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