Japanese automaker Nissan is hitting its employees hard. Reuters reports that the company is planning significant business cuts, including 9,000 jobs and 20% of its global manufacturing capacity.
Assembly line workers aren’t the only ones affected by layoffs. The New York Times reported that Nissan Motor Co., Ltd.’s CEO Makoto Uchida will have his monthly salary cut by 50%.
Japan’s third-largest automaker must cut costs by $2.6 billion this fiscal year. Nissan has revised its annual profit forecast by a whopping 70% as it struggles to sell cars in regions such as China and the United States, where there is a “lack of a reliable hybrid vehicle lineup.” Nissan’s global sales fell 3.8% in the first half of the fiscal year, including a 14.3% decline in China and a 3% decline in the United States.
Nissan said in a press release that it is not just cutting its workforce, but taking “urgent measures to restore business performance.” The company said it plans to introduce new energy-efficient vehicles in China and plug-in hybrid and e-POWER vehicles in the United States. So far, the only EVs in Nissan’s garage are the Leaf and Ariya.
