Nissan could cut thousands of worldwide jobs

Nissan could cut thousands of worldwide jobs

Nissan has warned on Wednesday that first-quarter profit tumbled around 90% percent with more than 10,000 job cuts expected.

It's as the crisis deepens at Japan's second-largest automaker.

The dismal earnings, due to be formally announced on Thursday, mark one of Nissan's worst quarterly performances in around a decade. The automaker is fighting to rein in its operations after years of aggressive expansion under former chairman Carlos Ghosn, ousted last year in a dramatic scandal that shook the industry.

The planned job cuts over the next few years include the 4,800 detailed in May and will mostly be at factories overseas with low utilisation rates, a person with direct knowledge of the matter said on Wednesday.

Nissan declined to comment on the job cuts. It said a Nikkei business daily report that it suffered roughly a 90% year-on-year drop in first-quarter operating profit was "broadly accurate". Its shares ended the day up nearly 1.0% earlier.

Nissan is struggling to improve weak profit margins in the United States, a key market where Ghosn for years pushed to aggressively grow market share during his time as chief executive.

Years of heavy discounting to grow sales in the world's second-biggest auto market have left Nissan with falling demand for the Altima sedan and other models, a cheapened brand image, low resale values, and a nearly battered bottom line.

Published: by Radio NewsHub
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