Nissan is to slash 9,000 jobs globally while its chief executive has taken a 50% pay cut in a bid to curb its losses.
The Japanese car maker, which has a UK factory in Sunderland, announced it would be reducing its worldwide workforce – which currently totals around 133,000 employees – by almost 7%.
Meanwhile, from this month, chief executive Makoto Uchida has voluntarily halved his monthly pay and executive committee members will also take a pay cut as the company revealed profits had plunged in the three months to the end of September.
The business lost 9bn yen (around £45m) in the quarter and has now cut its profit forecast for the year by 70%.
The firm said that “facing a severe situation, Nissan is taking urgent measures to turn around its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market”.
It blamed the losses on “higher selling expenses and inventory optimisation efforts, particularly in the US”.
In an effort to save £2bn, Nissan will reduce production by 20% and is also selling up to 10% of Mitsubishi Motors to boost its funds.
It will also not pay shareholder dividends as it aims to establish “a leaner, more resilient business capable of swiftly adapting to changes in the market”.
Uchida said: “These turnaround measures do not imply that the company is shrinking. Nissan will restructure its business to become leaner and more resilient, while also reorganising management to respond quickly and flexibly to changes in the business environment.”
The business employs 6,000 workers in the UK, but has not yet revealed if these employees will be affected.
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