Japanese automaker Nissan is set to make massive cuts to its workforce. Reuters reports that the company is planning some major cuts to its operations, including 9,000 jobs and 20 percent of global manufacturing capacity.
The cuts won’t just affect employees working on the assembly line. Nissan Chief Executive Officer Makoto Uchida is taking a 50 percent cut in his monthly salary, reports the New York Times.
Japan’s third-largest automaker is to cut costs by $2.6 billion this fiscal year. Nissan has cut its annual profit forecast by a whopping 70 percent as it struggles to sell cars in countries like China and the US, “where it lacks a reliable line-up of hybrid cars.” Nissan’s global sales fell 3.8 percent in the first half of the fiscal year, with China falling 14.3 percent and the US falling 3 percent.
Nissan said in a press release that it is taking “urgent measures to improve its performance” in addition to cutting its workforce. The automaker says it plans to introduce new energy-efficient vehicles in China and plug-in hybrids and e-Power vehicles in the U.S. So far, Nissan’s garage only includes EVs in the Leaf and Ariya fleets.
“I’ve decided to raise the bar on performance management and phase out low performers faster,” Zuckerberg said in the memo. “We typically phase out people who fail to meet expectations over the course of a year, but now we’re going to make more extensive performance-based cuts during this cycle.”
Overall, once attrition is taken into account, this could leave Meta with 10 percent fewer employees. Bloomberg suggested that the upcoming pink slips will focus on people “who have been with the company long enough to receive a performance rating.”