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

Published On Nov 7, 2024, 6:02 AM

Nissan is facing significant challenges as it reported decreased revenue and profitability during the first half of fiscal year 2024. To combat this, the company plans to cut 9,000 jobs and reduce global production capacity by 20%. CEO Makoto Uchida has volunteered to cut his pay by 50%, indicating an effort by executives to share in the company's struggles. Nissan aims to reduce fixed and variable costs significantly while focusing on new model introductions, including electric vehicles, and improving operational efficiency.

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Negative

Nissan's aggressive cost-cutting measures indicate a proactive approach to restructuring amid financial difficulties. While this may stabilize their operational metrics in the long run, the immediate outlook is negative due to job cuts and production reductions, which could impact revenue. However, if stakeholders view the restructuring positively, the medium-term prospects could improve, especially with the push towards electric vehicle development.

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