Nissan to cut over 10,000 jobs worldwide: report
24 July 2019
Japanese automaker Nissan plans to cut more than 10,000 jobs globally to cut costs and stay trim amidst falling vehicle sales, Japanese media reported on Wednesday, citing company sources.
The latest job cuts is over and above the reduction of 4,800 jobs that Nissan announced in May that brought down its global workforce to around 1,34,200.
Nissan’s net profit that fell to a near-decade low in the last fiscal year is expected fall further amidst slowing demand for its cars.
In May, Nissan reported a 57-per cent year-on-year fall in its net profit to ¥319 billion ($2.9 billion) for the fiscal year ended 31 March 2019. This was also the lowest since the 2009-10 when the company was struggling to get over the pangs of the global financial crisis.
Nissan’s profit outlook for the current fiscal is forecast to be even worse – at ¥170 billion.
The company, which is due to announce first-quarter earnings on Thursday, has already warned of “a difficult business environment” for the next 12 months.
“We have not decided yet what we will announce (at the Thursday earnings press conference), and we do not comment on (media) speculation,” AFP quoted Nissan spokesman Koji Okuda assaying.
Besides falling sales in the US and Europe, Nissan has also been reeling under managerial problems after the arrest of former boss Carlos Ghosn on financial misconduct charges.
Nissan, which is 43 per cent owned by Renault, has also been facing tensions with its French partner, which in turn is undergoing an overhaul intended to strengthen governance after the Ghosn scandal.
The job cuts are likely to hit some factories in South America and other regions where Nissan has low profitability, Kyodo news agency said.