Nissan to cut 12,500 jobs as profit plunges — Nissan layoffs

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Profits dropped by 98.5% in comparison to the first quarter of 2018, Nissan said, falling from 109.1 billion yen (€900 million/$1 billion) to 1.6 billion yen in 2019.

On top of stagnant sales, the company has also faced tensions with its French partner Renault, which owns 43 percent of the Japanese manufacturer. The company has said it will cut its production capacity by 10%.

Nissan said it will also cut global production capacity by 10% by the end of fiscal 2022 and reduce its product lineup by "at least" 10% in that period to improve product competitiveness.

The job cut, which represents around 10 percent of its global workforce, will be carried out at 14 loss-making plants both in Japan and overseas including those in Indonesia and Spain by the end of March 2023, according to Nissan officials.

The automaker will then cut an additional 6,100 in other locations by fiscal 2022.

The drastic job cuts and restructuring measures are reminiscent of what Ghosn did in the early 2000s to pull Nissan from the brink of bankruptcy, and also after the 2008 global financial crisis.

Union sources said they were hopeful Nissan's Sunderland vehicle plant would escape the cuts. Another 6100 will come by fiscal 2022.

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The planned production of Nissan's new X-Trail model was also moved to Japan instead of Sunderland back in February 2019, citing uncertainty over Brexit. It also lost ground to the biggest Japanese vehicle company, Toyota. Quarterly net income, meanwhile, fell by 94,5 percent to 6,4-billion yen.

"The first-quarter results were worse than expected", Saikawa said.

Ghosn, who arrived at Nissan two decades ago when Renault bought a stake when it was in trouble, turned around the carmaker through aggressive cost cuts.

Nissan sales in Europe, including Russian Federation, fell more than 16% in the quarter compared to a year ago.

He denies the charges and has blamed a conspiracy among Nissan executives for his downfall. "I hope in two years we will return to recovery".

"We will continue to monitor and react to market demand, but have no plans for further workforce reductions at this time" in the United States, said Lloryn Love-Carter, corporate communications for Nissan North America.

Multiple reasons have been cited as reasons for Nissan's profits slump, including global sales stagnation in the U.S. and Europe, falls in Asia, political uncertainty, tariffs, the need to invest in electrification and autonomy, and a part-ageing product line-up, including its successful Qashqai and Juke SUVs.