Nissan to axe 12,500 jobs in bid to cut costs

Nissan is slashing 12,500 jobs, or about 9% of its global workforce, in an effort to cut costs and achieve a turnaround amid tumbling profits.

The Japanese car company reported the job cuts alongside its first quarter earnings statement.

The company is struggling to restore its brand image and revive growth following the arrest of former chairman Carlos Ghosn in November for alleged financial misconduct. He says he is innocent. He is awaiting trial in Japan.

Nissan reported its global vehicle sales fell 6% in April-June, compared to the same period the year before.

The carmaker also said it will cut global production capacity by 10% and reduce model line-ups by at least 10%.

Nissan chief executive Hiroto Saikawa said most of the jobs cut will be car plant workers.

A company presentation posted on Nissan’s website said more than 6,400 jobs would be eliminated in eight unspecified locations by the end of this fiscal year. Another 6,100 will come by fiscal 2022, it said.

Mr Saikawa said sales are expected to begin to recover thanks to those measures. Some of the efforts have already begun, he said.