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AUTOMOBILE-EARNINGS-JAPAN-NISSAN
Nissan quarterly net profit plunges, 12,500 job cuts planned
YOKOHAMA, Japan, July 25, 2019 (BSS/AFP) – Crisis-hit Japanese automaker
Nissan said Thursday it would cut 12,500 jobs and announced a plunge in
quarterly net profit as it struggles with weak sales and the arrest of its
former chief.
The embattled firm has been buffeted by poor performance in the United
States and Europe and has been mired in the scandal of financial misconduct
charges against former boss Carlos Ghosn.
“Nissan will reduce its global production capacity by 10 percent by the
end of fiscal year 2022. In line with production optimisations, the company
will reduce headcount by roughly 12,500,” the firm said in a statement.
Nissan said net profit slumped nearly 95 percent in the April-June quarter
due to falling sales and growing costs.
The automaker’s bottom line profit dropped to 6.4 billion yen ($59
million) for the three months to June, from 115.8 billion yen a year earlier.
“Profitability was negatively impacted by the decrease in revenues and
external factors such as raw material costs, exchange rate fluctuations and
investments to meet regulatory standards,” it said.
The firm is working to turn around its fortunes after being plunged into
crisis by Ghosn’s arrest as it fights falling sales.
CEO Hiroto Saikawa said 6,400 job cuts had already been carried out in the
2018 and 2019 fiscal years at eight locations.
He declined to identify the six locations at which the firm plans to make
another 6,100 cuts between fiscal 2020-2022.
BSS/AFP/HR/1350