Nissan announces job cuts

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.

Nissan said it will cut its global production capacity by 10% and reduce model line-ups by at least 10%. It also reported that its global vehicle sales fell 6% in April-June, compared to the same period the year before.

To deal with its dwindling profits, Nissan disclosed that it will implement strategic reforms in order to build an operational base that will ensure consistent and sustainable profitability over the medium term.

"The company is moving quickly to optimize cost structures and manufacturing operations, while also enhancing brand value, steadily refreshing its lineup and achieving consistent growth globally, including in the U.S.," Nissan said

"To improve its overall utilization rate, Nissan will reduce its global production capacity by 10% by the end of fiscal year 2022. In line with production optimizations, the company will reduce headcount by roughly 12,500. Furthermore, the company will reduce the size of its product lineup by at least 10% by the end of fiscal year 2022 in order to improve product competitiveness by focusing investment on global core models and strategic regional models".

On expanding into new business areas, Nissan mentioned the recently-announced exclusive agreement with Waymo to explore driverless mobility services in Japan and France, and public field tests of new mobility services with DeNA.

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 said he is innocent and is currently awaiting trial in Japan.