Nissan announced it's axing 12,500 jobs worldwide, following the publication of the company's first quarter results for 2019.
As reported yesterday, the Japanese car maker confirmed the plunge in its net income, which is down 94.5 percent year-on-year for Q1. Sales volumes decreased by 6 percent to 1.23 million cars.
"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", the company said in its statement.
Also Read: Nissan To Announce More Than 10,000 Job Cuts Worldwide Due To Dramatic Drop In Profits
Nissan will also cut global production capacity by 10 percent by the end of 2022, as well as reduce its model range by at least 10 percent during the same period in order to improve its competitiveness and focus more on global core models and strategic regional models.
As for the 12,500 job cuts -around 9 percent of Nissan’s global workforce-, the company said that they will affect a total of 14 facilities worldwide. Reports suggest that most of them will come from manufacturing facilities outside Japan.
These include factories in Spain, Indonesia, Russia, France, Thailand, Mexico and UK, but which exact ones are going to be affected by the job losses remains to be seen.
The dismal quarter results are Nissan’s worst in a decade and will put pressure on the company’s embattled CEO Hiroto Saikawa.
Nissan maintained its profit forecast for the fiscal year 2019, at $2.1 billlion (230 billion yen), a 28 percent drop from last year and the weakest result in more than a decade.