Key points
- 20,000 jobs make 15pc of Nissan’s global workforce
- Nissan is Japan’s third-biggest automaker
- It is striving to make its business leaner, resilient after weak sales
ISLAMABAD: Nissan Motor is reportedly planning to cut more than 10,000 jobs globally.
The latest cuts will bring the number of layoffs, including those previously announced, to about 20,000 or 15 per cent of its workforce.
According to Japan’s public broadcaster NHK, Japan’s third-biggest automaker is striving to make its business leaner and more resilient after weak sales in China and its biggest market in the United States.
According to Reuters, the results for the business year that ended in March will be announced on Tuesday. Last month, it warned that due to impairment charges, it would likely book a record 700 billion yen to 750 billion yen ($4.74 billion—$5.08 billion) net loss in that year.
Shares surge
Nissan shares surged as much as 5.5 per cent in early trade on Tuesday after reports said the struggling Japanese carmaker plans to cut more jobs, according to AFP.
The heavily indebted company, one of the top 10 automakers by unit sales, is expected to log a record annual loss of around $5 billion later in the day.
Nissan, whose mooted merger with Honda collapsed earlier this year, has declined to comment on the job cut reports.
The reports said the firm is now aiming to reduce its total workforce by approximately 15 per cent, having announced in November that it would slash 9,000 positions.
Hybrid models
The car maker missed out on the growing popularity of hybrid models in the United States and failed to capitalise on an early lead in electric vehicles there.
It has also suffered in China, the world’s biggest auto market, where it plans to launch some 10 new vehicles in the coming years to try to halt a slide in sales.
Reuters also reported that Nissan, which had more than 133,000 staff as of March last year, announced plans last November to cut 9,000 jobs and reduce global capacity by 20 per cent.
