Nissan to cut over 10.000 jobs worldwide
According to internal sources, Japanese carmaker Nissan is preparing to cut over 10.000 jobs worldwide for financial reasons. The partner of Renault and Mitsubishi Motors has recorded a 57% net profit drop in its last fiscal year. This year, another significant reduction is foreseen.
Nissan isn’t in the best shape. In May, Hiroto Saikawa, the group’s CEO, already announced ‘drastic reforms’ with a possible job reduction of around 4.800 positions. Sales in the USA and Europe are dropping. Plus, tensions have risen with Renault ever since former CEO, Carlos Ghosn, was arrested.
Major job cuts
Tuesday, the Japanese news agency, Kyodo News, and other media reported information gathered from internal sources. According to them, Nissan is getting ready to cut over 10.000 jobs to face difficult times.
The group should announce that major news on Thursday during the publication of its results at the next shareholder’s meeting. That reform could affect more than 7% of Nissan’s workforce. One of the sites envisioned might be the Sunderland factory in the UK, especially now that a hard Brexit is getting a real threat with Boris Johnson becoming the UK’s prime minister.
Sunderland houses the most significant car plant in the UK since Nissan chose to produce there in 1986. It produces 500.000 cars per year and employs 7.000 people. 55% of the vehicles are exported to the European Union, without having to pay custom rights today.
Uncertainty about Brexit
Nissan announced already in January 2019 that it will not produce its new X-Trail SUV in Sunderland, as was previously planned. The car will be made in the Kyushu plant in Japan.
“We took this decision for financial and economic reasons,” said Gianluca de Ficchy, president of Nissan Europe, “but the uncertainty of the future relations between the UK and the EU is not very helpful for companies like ours to plan the future.”
With sales dropping in Europe and North America, Nissan’s net profit is taking a hit. During the last fiscal year, it dropped by 57% to 319 billion yen (2,5 billion euros). It is foreseen to decrease by half once again for 2019, to 170 billion.