Japanese carmaker Nissan is likely to announce job cuts at its production units across the globe like its peers as the automobile industry is going through its worst slowdown in decades. As per media reports Nissan is likely to remove 10000 people due to weak sales and this rumor prompted its UK union to hope that these labor cutbacks would not happen at Nissan’s Sunderland plant. While the firm has not made any formal public statements it is expected to report 90 % fall in profits during first quarter of this year. If the report is confirmed it could be the carmaker’s worst quarterly performance in decades.
As per a recent Reuters’ report the job cuts at Nissan are likely to be implemented over several years which will include the removal of 4800 employees announced in May this year. The firm is fine tuning its operations that were in a mode of growth and expansion under tutelage of former chairman Carlos Ghosn who was removed last year after being formally accused of financial impropriety and misuse of company funds for personal gains. Nissan is trying its best to improve sales and profit margins in US which is its key market after years of selling its products at wide discounts to improve sales.
Chairman of Nissan’s audit group Motoo Nagai stated this week that falling sales in US is a big concern of the firm right now and till recently they were focused only on increasing volume of sales which does not seem to have improved their profits. So now the focus will be on enhancing the brand. The job cuts would affect 7% of the firm’s total workforce in Brazil and India which have its largest production units. Nissan’s current boss Hiroto Saikawa stated that the firm is facing several challenges including its fractured relationship with French automaker Renault.