Honda Motor Co. said Monday managers' salaries will be slashed 5 percent starting next month to cope with sliding sales. The cut comes on top of the 10 percent pay reduction for directors announced last month.

The move affects about 4,800 managers at Honda group companies in Japan, including those stationed abroad, but not those hired by Honda's overseas units, the company said. The reduction will continue through May and what happens after that is still undecided, it said.

The automaker has been battered by the plunge in demand in major markets like the U.S. The rising yen also hurts Honda and other exporters by reducing their overseas earnings.

Last week, Honda slashed its profit forecast for the business year through March by 57 percent, to ¥80 billion from an earlier ¥185 billion. The latest projection marks an 87 percent slide from the ¥600 billion earned the previous year.

Honda also lowered its sales target by 3 percent to ¥10.1 trillion — the first time in nine years it will mark an on-year sales drop.

Still, Honda's troubles may be smaller than its rivals. General Motors Corp. and Chrysler have received massive bailouts from the U.S. government to stay in business. Toyota Motor Corp., the world's biggest automaker, is projecting its first operating loss in 70 years.

Toyota, Honda and Nissan Motor Co. have laid off thousands of temporary plant workers to adjust production.