Nissan Motors cautions of profit plunge ahead of 10,000 job cuts

by   |  VIEW 271
Nissan Motors cautions of profit plunge ahead of 10,000 job cuts

On Wednesday, the 24th of July 2019, Nissan Motors Co. Ltd., the crisis-sickened Japanese carmaker, headquartered in Yokohama, had raised alarms over its first quarter profit, saying that it would witness a heavy mangling of about 90 percent plunge in profits during first quarter ahead of an announcement of more than 10,000 job cuts expected to be aired as early as by tomorrow (July 25th).

In point of fact, the miserable earnings’ report scheduled to be formally announced by tomorrow (July 25th), would be marking the 86-year-old Japanese carmaker’s worst quarterly performance in a decade, as the second-largest automaker of Japan, Nissan, had been struggling to stomach a raft of pressures on potential reform after a decade of aggressive expansion under its former Chair and Nissan-Mitsubishi-Renault alliance boss, Carlos Ghosn.

If truth is to be told, Nissan Motor Co. Ltd. had been facing off both diplomatic and corporate pressures following dismissal and arrest of its former boss, Carlos Ghosn on November 19th over charges of financial misconducts, which eventually had initiated a raft of legal battles between the high-profile automotive industry executive, Ghosn, and Nissan Motor Co.

Ltd., while Ghosn had repeatedly denied the allegations saying that he had been a victim of corporate coup. As the Japanese automakers had been struggling to overhaul its internal structure and a troubled relationship with French carmaker Renault SA, it first quarterly operating profit had suffered a terrible plunge of more than 90 percent as beforementioned.

Meanwhile, in order to grapple up with its extending losses alongside a troubled relationship with French government that holds a 15 percent stake on Renault SA, following Ghosn’s arrest and dismissal, the Japanese carmaker had planned a mass-scale job cuts over the next few years, which may involve voluntary departure of more than 10,000 Nissan employees, a person briefed on the subject-matter had revealed on Wednesday (July 24th) in terms of anonymity as the spokesman was not authorized to speak about the issue on public.