Wednesday 21 August 2019

Nissan to cut 12,500 jobs as quarter one profit nearly wiped out

Nissan Skyline GT vehicles go on display during a launch event. Photo: Bloomberg
Nissan Skyline GT vehicles go on display during a launch event. Photo: Bloomberg
Independent.ie Business Desk

Nissan said on Thursday it would slash 12,500 jobs globally by 2022 and cut output to rein in costs as it suffers from sluggish sales and rising costs and tries to recover from a scandal surrounding ousted chairman Carlos Ghosn.

Japan's number two automaker also posted a 98.5pc plunge in first-quarter operating profit to 1.6bn yen (€13.2m) as it continues to struggle in North America, a key market where it has been stung by mounting costs for vehicle discounts to keep up with stronger sales at its rivals.

Nissan had flagged a steep drop in profit on Wednesday.

The automaker is widening job cuts initially announced in May as it struggles to improve dismal profit margins in the United States, a key market where Ghosn for years had pushed to aggressively grow market share during his time as CEO.

Nissan's operating profit in the April-June quarter compared with the 109.14bn yen made in the year-ago period and missed the 39.52bn yen average of eight analyst estimates compiled by Refinitiv.

The automaker kept its forecast of posting an annual profit of 230bn yen in the year to March, a 28pc drop from last year and its weakest in more than a decade.

Reuters

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