Business, Business, Business

Nissan Plans To Cut 12,500 Jobs Globally

Nissan intends to axe more than 12,500 jobs around the world by 2022, with most of the cuts coming in Europe.

The Japanese car manufacturer is suffering from falling sales in the US, one of its biggest overseas markets, following years of heavy discounts.

The global plan includes the 4800 job cuts announced in May and will mostly be at factories in South America and other regions where Nissan’s profitability is low.

The cuts, exceeding nine percent of Nissan’s 138,000-strong workforce, highlight the extent of problems facing Chief Executive Hiroto Saikawa, who is also grappling with fractured relations with French alliance partner Renault, which owns 43 per cent of the Japanese manufacturer, following the arrest of their shared former chairman, Carlos Ghosn.

Nissan, which has about 138,000 employees worldwide, warned in May that its operating profit would fall to the lowest level in 11 years after posting a 98.5 per cent plunge in first-quarter operating profit.