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Nissan announces 12,500 job cuts worldwide

Yesterday's reports are today's news, with Nissan announcing it will cut 12,500 jobs from its global workforce.


The news comes on the back of a 94.5 per cent drop in profits during the first quarter of 2019, its worst result in 10 years.

Nissan will cut its global production capacity by 10 per cent by 2022, and reduce its model range by at least 10 per cent by the same point.

There's no word on which models will be cut, nor where the job losses will be felt, but the company said the model restructure will likely impact compact cars and the Datsun range. Nissan's CEO told reporters more than half of the job cuts have played out across eight locations already, with the remaining 6100 to come across six more locations.

Reports have suggested they'll come from Nissan plants outside of Japan, putting factories in Spain, Russia, Indonesia, France, Thailand, Mexico and Great Britain in the firing line. Union representatives in the UK believe the Sunderland plant is safe for now, however – though production of the X-Trail and Infiniti Q30/QX30 will be stopped at the site in the coming years.

The results put pressure on CEO Hiroko Saitawa, who succeeded Carlos Ghosn at the helm of Nissan. Sales are down in the USA, one of Nissan's most important markets, and its European business is struggling as well.

 

In Australia, the brand is sitting on 25,350 sales year-to-date in Australia, down 14.7 per cent on 2018. The only passenger car it offers is the $49,990 before on-road costs Leaf electric car, with the brand instead focusing on SUVs and the Navara ute.

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