Nissan to lay off 12,500 employees worldwide amid restructuring

The Nissan announced on Thursday a cut of 12,500 employees in six operations in the world, in the midst of a restructuring and falling sales process. In the first quarter of the fiscal year (April to June), the group’s net profit plummeted 94.5% to 6.4 billion yen (about 52 million euros), according to a statement released today.

Nissan’s global sales fell 6 percent in the first quarter of the fiscal year to 1.23 million units. The automaker’s sales declined in Europe, Asia, Latin America, Africa and the Middle East. In China, there was growth. In the United States, an important market for the company, sales fell 3.7% to 365,000 units.

The automaker is still trying to balance the sales decline with the high investments needed to develop electric cars, a segment in which it is one of the leaders in the world.

“To improve overall utilization rate, Nissan will reduce its global production capacity by 10% by the end of fiscal year 2022. In line with production optimizations, the company will reduce headcount by about 12,500,” Nissan said in a statement, without saying which units will be affected.

In addition, the automaker said it will reduce its product line size by at least 10 percent by the end of fiscal year 2022, “in order to improve product competitiveness by focusing investment on global core models and strategic regional models.”

The former CEO of the company and one of the mentors of the group’s strong advance in the world, Brazilian Carlos Ghosn, is still facing investigations on corruption charges, which has been hampering the long-standing alliance with the French Renault.

Leave a Reply

Your email address will not be published. Required fields are marked *