Nissan Laying Off 9K People, CEO Taking Major Pay Cut: ‘A Severe Situation’

The car industry hasn't yet recovered from the COVID-19 pandemic, when there was a shortage of new cars. It has taken the car industry a few years to catch up.

By the time they did, they had too many cars and not enough buyers.

Nissan is one of the major car companies that is feeling the heat. So much, in fact, that they are making dramatic changes to the way they operate.

Nissan announced that they will be cutting 9,000 jobs — and get this — even the CEO has offered to take a 50 percent pay cut to help drive the point home, and hopefully help get the company back on track in the United States.

The major car manufacturer isn't beating around the bush, either: They are saying they must take "severe measures" to turn the ship, or car, in this instance, around.

The workforce at Nissan isn't the only thing getting cut — they are going to make 20 percent less cars and trucks moving forward.

"The company is implementing various measures to lower selling, general, and administrative expenses, decrease the cost of goods sold, rationalize its asset portfolio, and prioritize capital expenditures and investments in research and development," a spokesperson for Nissan explains.

In addition to the CEO of Nissan, Makoto Uchida, other executive committee members have volunteered to take pay cuts. According to the BBC, Uchida personally made more than $4 million in 2022.