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Nissan Motor Co. is gearing itself into cutting $2.8 billion of its annual fixed costs as part of a restructuring effort. News titan Bloomberg had reported the matter on Wednesday as the company prepares for a sales drop that further compromises its already poor profitability.
The past three years had seen Nissan with floundering profits, leading it to resort to a restructuring plan on May 28th. This is its most recent attempt at slashing costs after its resolve on aggressive selling that resulted into its plummetting to the bottom line.
Marketing and research are two areas that are to slash fixed costs from, according to the news firm that didn't name its sources. Bloomberg went on further to report that Nissan's board has yet to review its plans.
It is worthy of note that even before the pandemic, Nissan has had poor sales and profits. As such, it was compelled to have its aggressive expansion plan, (authored by ousted leader Carlos Ghosan) rolled back.
The immediate measures being looked at in Nissan's planned cut are the phasing-out of the already struggling lower-cost Datsun brand and the closing-down of an additional vehicle production line.
A Nissan spokesperson denied to give her comments on said reportage.
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