Nissan is reportedly planning to axe more than 10,000 employees from its global workforce in a bid to turn around its business, Kyodo News reports. Sources within the company told the Japanese news agency that the job cuts are expected to be announced by the automaker later this week, when it releases its April-June earnings figures.
The number of cuts – which is expected to mostly come from factories in regions with low utilisation rates and through early retirement options – is markedly higher than that suggested originally. In May, Nissan had said it was planning to let go around 4,800 employees.
The report indicates that the company is looking at reduction plans in regions where it has low profitability, and it may also streamline output in its domestic market.
If that suggested by the report rings true, the move will see the company reducing its overall global workforce by around 7% – based on that listed in its financial report, Nissan and its group companies had about 139,000 employees on its roster as of March this year.
Nissan saw its global vehicle sales fall 4.4% to 5.52 million units in fiscal 2018, including a 9.3% decline in the US market and a 14.9% drop in Europe. Nissan’s nett profit hit a nine-year low into March, and the company has projected it will nearly be halved in fiscal 2019.
The automaker has also been struggling to repair the relationship with alliance partner Renault following the fallout from the failed merger with Fiat Chrysler Automobiles. Undercurrents continue to be present within the union, and the Carlos Ghosn affair hasn’t helped the cause either.