Nissan to cut 9k jobs, reduce CEO's monthly pay by 50% as company faces 'severe situation'

Business Performance and Challenges - Nissan Motor Company reported decreased consolidated net revenue, global sales volumes, and an operating profit margin of 0.5% in the first half of Fiscal Year 2024 [1] - Global sales volumes decreased year-on-year to 1.6 million units in the first half of FY24 [6] - Profitability was impacted by higher selling expenses, inventory optimization efforts in the US, and rising monozukuri costs [6] Turnaround Plan and Cost Reduction - The company plans to reduce fixed costs by 300 billion yen (over $1.9 billion) and variable costs by 100 billion yen ($649 million) while maintaining healthy free cash flow [2] - Nissan will cut global production capacity by 20% and reduce its global workforce by 9,000 employees [2] - Measures include lowering selling, general, and administrative expenses, decreasing the cost of goods sold, rationalizing the asset portfolio, and prioritizing capital expenditures and R&D investments [3] Leadership and Compensation - President and CEO Makoto Uchida volunteered to forfeit half of his monthly compensation, with other executive committee members also taking pay cuts [4] Strategic Initiatives and Product Development - Nissan aims to launch 30 new models by 2027 and reduce the cost of electric vehicles (EVs) [4] - The company plans to advance the introduction of new energy vehicles in China and plug-in hybrids and e-POWER in the US [6] - Vehicle development lead time will be reduced to 30 months [6] Business Restructuring and Partnerships - Nissan is restructuring its business to become leaner and more resilient, with a focus on enhancing product competitiveness and responding quickly to market changes [5] - The company will deepen collaborations with Renault Group, Mitsubishi Motors Corporation, and Honda Motor Company, while exploring strategic partnerships in technology and software services [7] - A chief performance officer responsible for sales and profit will be appointed and operational by December 1 [7] Long-Term Vision - Nissan's ultimate goal is to create a leaner, more resilient business capable of swiftly adapting to market changes [7]