Japanese motor giant refuses to say where cuts will fall as it seeks to revive flagging fortunes
Nissan said it would cut 12,500 jobs globally over the next three years as the Japanese carmaker tries to revive its business after profit was almost wiped out in the first quarter of its financial year.
The company, which employs about 8,000 people in the UK and 139,000 worldwide, did not disclose where the job cuts would fall. The cuts are bigger than expected after it emerged on Wednesday that at least 10,000 jobs would go.
Doubts have been hanging over the future of Nissan’s plant in Sunderland, the UK’s largest car factory with Brexit adding to wider pressures on the company. In February Nissan cited uncertainty about Britain’s departure from the EU when it shifted production of its X-Trail model from Sunderland.
The job cuts are expected to mainly fall in factories in South America and other regions where Nissan’s profitability is low. Nissan produces about 2,000 cars a day in Sunderland, where the company employs about 7,000 people and is one of the city’s most important employers.
Nissan announced the job cuts as it unveiled results showing profit almost obliterated by falling sales and rising costs in the first quarter. Operating profit in the three months to the end of June fell 98.5% to 1.6bn yen (£11.9m) as revenue fell 12.7% to 2.37bn yen.
Along with the planned job cuts Nissan will cut its global production capacity by 10% by the end of 2022 and reduce the number of products by 10%.
The company is suffering from falling sales in Japan and the US, where it is being forced to discount prices to compete with stronger sales by competitors. It is also trying to recover from the arrest last year in Japan of its former chairman Carlos Ghosn over alleged misuse of company funds, which he denies.
Carmakers globally are suffering from falling sales caused by trade disputes, the slowing global economy, Brexit uncertainty and tougher emissions regulations.
A Nissan spokesman at Sunderland declined to comment.