Nissan to cut 12,500 jobs as outlook darkens after profit wipes out

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Nissan to cut 12,500 jobs as outlook darkens after profit wipes out

On Thursday, the 25th of July, the Japanese Carmaker, Nissan Motor Co. Ltd., headquartered in Yokohama, Kanagawa Prefecture, had unleashed its largest reform strategy in more than a decade to axe roughly a tenth of its global workforce, meanwhile triggering possibilities of plant closures in order to have a crack at reassembling operations following departure of the carmaker’s former heavyweight CEO, Carlos Ghosn.

In point of fact, latest downsizing of its workforce was announced following its dismal quarterly earnings’ report on Thursday (July 25th), which had experienced a nearly 90 percent drop in operating profit during Q2, 2019 following sluggish global sales and heightening operating costs, while crisis seemed to have deepened further, as Nissan Motor Co.

Ltd.’s latest nosedive on quarterly earnings’ would pile up pressure on Company CEO, Hiroto Saikawa, who had been appointed last November to shore up Japanese automaker’s performance following arrest and dismissal of its former CEO and Chairman of Nissan-Mitsubishi-Renault alliance Carlos Ghosn over allegations of financial misconducts.

Although a slowing demand in China, which was bottlenecked further following US tariff hikes, had faltered consumers’ confidence of Nissan Motor, the Japanese carmaker’s gruesome legal battle against its former Chair, Carlos Ghosn had largely weighed on its European markets and net sales, analysts suggested following reveal of Nissan’s worst quarterly earnings’ in a decade.

Nonetheless, in order to grapple with an amped up pressure on company’s sales, which had been rocketing for more than a decade under Carlos Ghosn’s command, Nissan’s newly reformed management board with two Renault executives had decided to axe as little as 12,500 jobs globally by March 2023, remarking the carmaker’s deepest job slash since 2009, while the move would downsize Nissan’s production-line output by 10 percent, said Nissan CEO Saikawa in a post earnings’ call on Thursday (July 25th).