Production capacity at Japanese carmaker will be reduced by 20% and sales budgets cut
CEO Makoto Uchida offered to immediately begin forfeiting half of his monthly compensation
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.
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.
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