Nissan announced that it would shrink its global workforce by 9%.
As it contends with a sharp drop in operating profits, CNET reported that about 12,500 jobs will be eliminated at 14 loss-making factories overseas, including in Indonesia and Spain, by the end of March 2023, the Yokohama-based automaker said Thursday. That represents about a tenth of Nissan’s total workforce, and more than double the 4,800 reductions announced in May.
According to Reuters, the drop in operating profit far outpaced the 66% decline predicted by analysts, at ¥1.6 billion ($14.8 million) in the April-June period. Nissan’s profit margin is currently its worst since it posted a loss in March of 2008,
In a news conference, Nissan president and CEO Hiroto Saikawa said the company has started reducing production at eight sites worldwide and expects to have cut 6,400 jobs by the end of March 2020. Recent reporting from BBC has stated that many other car manufacturers have reported weak or falling demand worldwide. Last month Ford announced around 12,000 jobs across Europe by the end of 2020, which it is hoping to achieve through voluntary redundancy, while Honda said it would close its Swindon plant by 2021 with the loss of 3,500 jobs.
Despite the tough moment Nissan is experiencing among its workforce, the company can still rely the growing popularity of electric cars to get by, as the Leaf recently became the first EV to top 400,000 sales.