Nissan to cut 12,500 jobs worldwide

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Nissan to cut 12,500 jobs worldwide

To cope with weaker demand, Nissan said it will also cut global production capacity by 10% by the end of fiscal 2022 and reduce its lineup by at least 10% to improve competitiveness.

This follows on a massive drop in profits, with the company reporting that its first-quarter operating profit plunged 94.5% to 1.6 billion yen (RM60.5 million).

On top of industrywide pressures, Nissan has been facing turmoil as its former chairman and CEO, Carlos Ghosn, was charged with corruption.

The carmaker recently revamped the Nissan Skyline with design changes and features to make it more appealing to the Japanese market, and is also betting that passenger cars, especially electric sedans, will help drive future sales in China, Latin America and other growing markets. "But we think this is a figure that we can certainly recover in the next quarter or half year", Saikawa added.

Its group operating profit fell 98.5 percent to 1.61 billion yen (14.84 million USA dollars) on sales of 2.37 trillion yen (21.85 billion US dollars), down 12.7 percent, in the quarter, Nissan also said.

Julie Palmer, partner at insolvency specialists Begbies Traynor, said the job cuts were a drastic measure for Nissan.

Nissan had a dismal 0.1% operating margin.

In January, Nissan started offering buyouts of up to $125,000 to some employees in Tennessee and laid off 381 contract workers in MS in March.

Nissan said it will slash roughly 12,500 jobs from its workforce worldwide.

Nissan will first cut more than 6400 jobs in eight locations by the end of the current fiscal year through next March.

Nissan has promised plenty with some of its products but these have not translated into big numbers.

Nissan earlier adjusted production at its assembly plant in Canton, MS, by reducing shifts and no further cuts are planned at the complex in central Mississippi.

He declined to identify the six locations at which the firm plans to make another 6,100 cuts between fiscal 2020-2022, saying some factories would close while others would operate with fewer production lines.

Nissan plans to shrink that aging range by approximately 10%, getting rid of compact cars that aren't selling as well in an SUV and crossover-crazed market. The automaker also produces compact auto models in its plants in Mexico, Russia, France and Thailand, but there was no specific mention of locations or the scale of reduction involved.

The automaker had 138,000 employees globally as of March previous year.

The continent is a key market but Nissan has been stung by the. Ghosn has denied the charges of financial misconduct.

Yokohama-based Nissan reported its global vehicle sales fell 6% in April-June, compared to the same period the year before.

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