Nissan Motor Co. chief executive Hiroto Saikawa is slashing around 12,500 jobs worldwide.
This comes as part of a new plan to revive Nissan after a 99% drop in operating profit in the latest quarter of falling sales in every major market, except China.
Saikawa says the results are more negative than expected.
“We thought the situation would be challenging. But the actual retail performance was slightly under what we expected. We have to admit that.”
Profit tumbled to 1.6 billion yen (NZ $22,113,600) in fiscal first quarter, ending June 30. Nissan’s quarterly results, announced on July 25, shows a 95% net income drop to 6.4 billion in the April-June period.
In the three months, Nissan’s revenue dropped 13% to 2.37 trillion yen (NZ $32,751,030,000).
Saikawa is also trying to maintain a good relationship with Renault, whilst aiming to rebuild U.S. sales to 1.4 million vehicles in the fiscal year ending March 31, 2023.
A further 4800 jobs were cut in May, and Saikawa said on July 25 6400 cuts have already been made in eight locations worldwide.
Most jobs lost will be factory jobs.
The cutbacks will focus on plants that are working below capacity, that make small cars and factories making Datsun products.
“Loss-making overseas factories would be the main targets,” Saikawa says.
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