Nissan to cut over 10,000 jobs globally: sources

Kyodo News

Posted at Jul 24 2019 01:11 AM

Nissan Motor Co. plans to cut more than 10,000 jobs globally as part of efforts to turn around its business, company sources said Tuesday.

Nissan's planned additional job cut comes after it said in May it will reduce its global workforce by 4,800.

Nissan's group net profit hit a nine-year low in the year through March, hit by weak sales of its cars in the U.S. market, and the Japanese automaker has projected it will nearly be halved in fiscal 2019.

Also, since the arrest in November of its former Chairman Carlos Ghosn over alleged financial misdeeds, Nissan has been struggling to restructure its management team and ties with Renault SA, its biggest shareholder.

The additional reduction in workforce, including through early retirement options, is expected to be announced by the Yokohama-headquartered automaker on Thursday, when it releases earnings figures for the April to June period of this year.

Some factories in South America and other regions where Nissan has low profitability are likely to be subject to the reduction plan, while it may try to streamline output in Japan.

As of March this year, Nissan and its group companies had about 139,000 employees, according to its financial report.

Nissan has acknowledged it was overstretching to meet numerical targets, such as by relying on incentives, in the U.S. market.

It has been reviewing the expansionist business strategy spearheaded by Ghosn, who built the three-way alliance also involving Mitsubishi Motors Corp. and led an auto group that was the world's second largest last year in terms of vehicle sales.

In fiscal 2018, Nissan saw its global vehicle sales fall 4.4 percent to 5.52 million units, including a 9.3 percent decline in the United States to 1.44 million units and a 14.9 percent drop in Europe to 643,000 units.