Carmaker to slash global production capacity by a fifth in emergency turnaround plan
Nissan has launched an emergency turnaround plan that includes 9,000 job losses and a voluntary 50 per cent pay cut for chief executive Makoto Uchida after unveiling another profit downgrade. Japan’s third-largest carmaker said it would slash global production capacity by 20 per cent in an attempt to reduce fixed costs by ¥300bn and variable costs by a further ¥100bn. Nissan has been plunged into crisis since it lacks the hybrid vehicles that have helped rivals Toyota and Honda.
2mn cars, down from a previous forecast of 3.45mn, and slashed its annual operating profit forecast by 70 per cent to ¥150bn. “Facing a severe situation, Nissan is taking urgent measures to turn around its performance and create a leaner, more resilient business,” the company said in a statement. The job cuts represent almost 7 per cent of Nissan’s workforce, which was 133,580 at the end of its previous financial year. Operating profit decreased by 90 per cent to ¥32.
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