What Is Austerity? | The Breakdown By HuffPost
Ten years after austerity measures were put in place in the UK, the government has finally reported a small budget surplus. The huge debts incurred after bailing out banks during the 2008 global financial crisis led to an emergency budget which massively reduced government spending. But homelessness, child poverty and reliance on food banks have increased.\n\nIn this episode of The Breakdown By HuffPost, we explore if austerity measures were a temporary and necessary financial tool to bring the country back from the edge of bankruptcy, or a new mindset of how the government funds social spending like housing, welfare and schooling. If the employment rate is at a 44-year low, why are people doing so badly under austerity Britain?\n\nFacebook: https://www.facebook.com/pg/HuffPostUK/videos/\nTwitter: https://twitter.com/HuffPostUK\nInstagram: https://www.instagram.com/huffpostuk/
Nissan entered austerity mode
Nissan Motor Co instructs its managers to cut nonessential costs as automaker grapples with slumping car sales and falling profits.
In particular, the manager was told to end unnecessary travel and promotional activities in order to «save every yen».
Working meetings, which were previously attended by three – four employees are now limited to a single Nissan representative. Part of the meeting and dinners were completely canceled or replaced by video conferencing. The massive cost cuts come with the automaker’s decision to send its US employees on two-day January vacation. The travel ban also extends to U.S. personnel, where the drop in sales is even greater.
Nissan’s crisis is not financial, problems associated with the departure of several top managers and strained relationship with alliance partner Renault SA.
In April, the automaker launched an ambitious plan to revive sales and increase profits, but the business outlook deteriorated more than expected. In November, the automaker reported a 70% drop in operating profit in the second quarter and cut its full-year forecast to an 11-year low..
The automaker has good lines of credit and plenty of cash, including money in China that has accumulated in joint ventures over the years, a Nissan spokesman said..
Nissan shares slipped to their lowest since September 2011 this week after Jun Seki, chief operating officer and former CEO contender, said he was leaving Nidec Corp..