AutoBeta(AutoBeta.net)07/24 Report--

Nissan plans to cut 10000 jobs worldwide to improve its performance, Kyodo news agency reported.

Plummeting profits and massive layoffs around the world are a sign of the enormous pressure on Nissan. According to the latest news, Nissan plans to cut at least 5200 more jobs worldwide, and the company announced in May that it would cut 4800 jobs, bringing the total number of layoffs to 10000, more than 7 per cent of Nissan's global workforce.

The layoffs include the 4800 jobs announced in May, mainly at underutilized overseas factories, according to people familiar with the matter. It is not clear whether the layoffs involve the Chinese market, and people familiar with the matter said Nissan should announce it at the same time as its financial results on July 25.

Nissan announced its consolidated results for fiscal year 2018 (April 2018-March 2019) on May 14, with sales down 3.2% from a year earlier to 11.5742 trillion yen (726.22 billion yuan). Net profit fell 57.3% to 319.1 billion yen (20 billion yuan) from the previous fiscal year, marking another record low for Nissan eight years later.

At the same time, Nissan is not optimistic about its fiscal year 2019 results, of which profits will be further halved. Nissan expects sales of 11.3 trillion yen and net profit of 170 billion yen in fiscal 2019, with both revenue and profit falling. The reason is sluggish sales in the main U. S. market and a setback in the sales expansion route promoted by former Chairman Ghosn, who was charged with detention.

President Hiroto Nishikawa said at the press conference that the performance continued to decline in North America and Europe, and that the sales expansion route implemented by former Chairman Ghosn would be significantly adjusted to achieve sustainable growth.

It has been reported that Nishikawa Hiroshi may resign as a result of a sharp drop in profits and Nissan's involvement in a scandal over its former chairman. At the press conference, Nishikawa Guangren directly denied the claim that he had taken the blame and resigned because of deteriorating performance.

In order to restore performance and improve profit margins, Nissan also announced some upcoming measures. These include massive layoffs around the world, the launch of new models with all the main models, and an increase in the sales share of electric vehicles to 30%.

After Ghosn's arrest, the alliance between Nissan and Renault is unstable. Renault's new chairman, Shennard, has put forward plans for a merger, but Nissan does not want to merge and has repeatedly rejected the merger route, believing that this is not the time to discuss this topic. Renault-Nissan alliance has been tense.

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