Nissan to cut 12,500 job as profits crash

TOKYO: Car maker Nissan said it would cut 12,500 jobs worldwide.

The Japanese car giant said the job cuts, which dwarf the 4,800 cuts announced by the company in May, will be made by the end of 2022 and reduce its global production capacity by 10% as the company looks to focus investment on global core models and strategic regional models.

Meanwhile, net profits came in at YEN 6.4bn yen (£47m) for the three months to June 30, 94.5% lower than the same period last year, as overall revenues dropped by 12.7% to YEN 2.4bn following continued struggles in North America, where the company has reportedly used rampant discounting in an attempt to keep up with competitors.

“Global total industry volume remained weak during the quarter, and Nissan’s unit sales decreased as the company continued its efforts to normalize sales. Profitability was negatively impacted by the decrease in revenues and external factors such as raw material costs, exchange rate fluctuations and investments to meet regulatory standards,” said Nissan.

(Agencies)