Nissan will cut 9,000 jobs worldwide while its CEO has taken a pay cut of 50% to try and reduce its losses.
The Japanese automaker, which has an UK factory in Sunderland announced that it will be reducing the worldwide workforce, which is currently around 133,000, by almost 7%.
In addition, the executive committee will be taking a pay reduction as well, after the company announced that profits dropped in the three-month period ending September.
The company has cut its profit projection for the year 70% after losing 9 billion yen (around PS45m).
Nissan said it was taking “urgent measures” to improve its performance. It also said that the firm would be able to quickly adapt to market changes.
The company blamed its losses on “higher sales expenses and inventory optimization efforts, especially in the US”.
Nissan is selling Mitsubishi Motors up to 10% to increase its finances and reduce production by 20%.
It will not also pay dividends to shareholders as it seeks to create “a leaner and more resilient business that can quickly adapt to changes in market”.
Uchida stated: “These measures to turn the company around do not mean that it is shrinking.” Nissan will restructure their business to make it leaner, more resilient and also reorganise management to be able to react quickly and flexibly in response to changes to the business environment.
The company employs around 6,000 people in the UK. However, it hasn’t revealed whether these workers will be affected.
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