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Nissan Implements Major Workforce Reductions Amid Financial Struggles
Nissan, the renowned Japanese automotive manufacturer, is set to significantly reduce its workforce as part of a broader strategy to address financial challenges. Recent reports indicate that the company plans to eliminate approximately 9,000 jobs and scale back its global manufacturing capacity.
The impact of these cuts will extend beyond assembly line workers. In a move reflecting the company’s commitment to cost-cutting measures, Nissan’s Chief Executive Officer Makoto Uchida has announced a substantial 50 percent reduction in his monthly salary.
Financial Challenges and Strategic Adjustments
As Japan’s third-largest automaker grapples with financial difficulties, it aims to slash costs by $2.6 billion during this fiscal year. The company has drastically revised its annual profit forecast downward by an astonishing 70 percent due to declining sales in key markets such as China and the United States—regions where Nissan struggles with an insufficient lineup of hybrid vehicles. In fact, global sales for Nissan have decreased by 3.8 percent in the first half of this fiscal year, with particularly sharp declines of 14.3 percent in China and 3 percent in the U.S.
Plans for Future Growth
Nissan has stated that it is taking ”urgent measures” not only through workforce reductions but also by implementing strategies aimed at revitalizing its market performance. The automaker intends to introduce new energy-efficient models tailored for the Chinese market while also launching plug-in hybrids and e-POWER vehicles in the United States. Currently, Nissan’s electric vehicle offerings are limited but are expected to expand as part of their recovery plan.
This article was originally published on Engadget.
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