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Nissan to cut 12,500 jobs worldwide | Nissan to cut 12,500 jobs worldwide |
(32 minutes later) | |
Japanese car giant Nissan has announced 12,500 job cuts as it attempts to shore up its finances after recent troubles. | Japanese car giant Nissan has announced 12,500 job cuts as it attempts to shore up its finances after recent troubles. |
It will reduce its production capacity and the number of models it produces by 10% by the end of 2022, but it did not say where the cuts will fall. | It will reduce its production capacity and the number of models it produces by 10% by the end of 2022, but it did not say where the cuts will fall. |
The firm also announced a 94.5% fall in net income for the first quarter of 2019. | The firm also announced a 94.5% fall in net income for the first quarter of 2019. |
This is one of the one of the carmaker's worst quarterly performances in a decade. | This is one of the one of the carmaker's worst quarterly performances in a decade. |
Union sources are hopeful that Nissan's Sunderland car plant will escape the effects of the job cuts, 4,800 of which had been previously announced. | |
Nissan continues to struggle in the US, a key market, where it has been heavily discounting to keep up with sales by rivals. | Nissan continues to struggle in the US, a key market, where it has been heavily discounting to keep up with sales by rivals. |
The carmaker is reining in its operations after years of expansion under former chairman Carlos Ghosn, who was ousted last year after being accused of financial crimes. | The carmaker is reining in its operations after years of expansion under former chairman Carlos Ghosn, who was ousted last year after being accused of financial crimes. |
In a news conference, Nissan boss Hiroto Saikawa said the job cuts would account for a "big portion" of the savings it was trying to make. | In a news conference, Nissan boss Hiroto Saikawa said the job cuts would account for a "big portion" of the savings it was trying to make. |
He said the firm has already started cutting production at eight sites worldwide, and expects to have culled 6,400 jobs by the end of March 2020. | |
He did not specify which models would be targeted for production cuts, but said they would be likely to affect "compact cars and its Datsun range". | He did not specify which models would be targeted for production cuts, but said they would be likely to affect "compact cars and its Datsun range". |
Analysis | |
Theo Leggett, international business correspondent | |
Battered by scandal, and struggling to curb falling sales, Nissan is taking dramatic steps. | |
It now plans to cut 12,500 jobs worldwide and close or reduce capacity at up to 14 factories as it tries to reduce excess capacity and cut costs. | |
In the three months to the end of June, the company made an operating profit of just £12m ($14m), compared with more than £800m ($1bn) in the same period last year - a decline of 98%. | |
Sales in the US, one of its biggest markets, have declined sharply, while there have also been concerns in Europe. | |
Last year, the company's former chairman, Carlos Ghosn, was dismissed, following his arrest in Japan on charges of financial misconduct. | |
He denies the charges and has blamed a conspiracy among Nissan executives for his downfall. |