Hyundai Motors has announced that it is going to reduce costs by cutting down on business class flights and annual family visit trips for its employees. The car manufacturer has announced that it will also be cutting down on printing costs as well as encourage its employees to utilise video conferencing as a cheaper alternative to travelling. The carmaker will be resorting to these measures owing to a decline in profits for the fourth consecutive year.
According to a Reuters report, executives of Hyundai Motor Group have taken a 10 per cent cut in pay since October 2016. The company has also downgraded hotel rooms for its executives while they are travelling on work. The number of executives at the company have risen by 44 per cent in the past five years.
"We are trying to address a mismatch between the market trend and our product line-up. That's a longer-term plan. For now we are trying to save every penny," a Hyundai employee told Reuters on the condition of anonymity. Hyundai's current product line-up has more sedan models than SUVs. Currently, SUVs are gaining more popularity among buyers.
Hyundai has been hit hard by the economic uncertainty while SUV sales of its rivals have increased. Its share value has also dropped by around 40 per cent in the last three years. The company is planning to update its SUV range and export more of them to the United States.