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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 said it will cut 12,500 jobs around the world, more than double the amount previously announced. | |
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. |
It comes as the firm tries to shore up its finances amid weakening sales. | |
Union sources said they were hopeful Nissan's Sunderland car plant would escape the cuts. | |
In May, it announced job losses of 4,800, which are included in the new total. | |
On Thursday, the firm announced a 94.5% fall in net profit for the first quarter of 2019 - one of its worst quarterly performances in a decade. | |
Nissan has been struggling in the US, a key market, where it has been heavily discounting to keep up with sales by rivals. | |
It also reported first-quarter sales falls in Europe, Asia and Oceania, Latin America, the Middle East and Africa. | |
The firm 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, chief executive Hiroto Saikawa said the job cuts would account for a "big portion" of the savings it was trying to make. | |
Of the 12,500 job losses, 6,400 have already been implemented at eight locations, he said. | |
Nissan plans to shed another 6,100 jobs between the 2020 and 2022 financial years at six locations. | |
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". |
The cuts will fall on unprofitable models, Mr Saikawa added. | |
Nissan's Sunderland plant makes profitable lines and also manufactures the Leaf electric car. Part of the firm's broader strategy is a focus on electric vehicles. | |
However, in February it announced it would build its new X-Trail model in Japan, instead of Sunderland, blaming Brexit uncertainty. | |
A month later, it said it planned to end the production of two of its Infiniti cars at Sunderland. | |
Analysis | Analysis |
Theo Leggett, international business correspondent | Theo Leggett, international business correspondent |
Battered by scandal, and struggling to curb falling sales, Nissan is taking dramatic steps. | 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. | 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%. | 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. | 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. | 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. | He denies the charges and has blamed a conspiracy among Nissan executives for his downfall. |