Nissan Motor is expected to cut more than 10,000 jobs worldwide, or more than 7% of its global workforce, according to a report by Kyodo News citing company officials.
The 10,000 redundancies expected to be announced this week are understood to include the 4,800 job cuts it had already announced in May, as the company looks to turn around its business after its global sales fell by 4.4% to 5.52m vehicles in the fiscal year ended on 31 March 2019 (FY2019). This included a 14.9% decline to 643,000 units in Europe and a 9.3% slip to 1.44m units in the US.
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Sales in Japan were 2% higher at 596,000 units in FY2019, but fell 9.6% to 186,000 units in the final quarter of the fiscal year, according to registration data released by the Japan Automobile Manufacturers Association.
The automaker's global revenue declined 3.2% to JPY11,574.2bn in FY2019 while operating profit plunged by 44.6% to JPY318.2bn.
Operating margin fell 4.8% from 2.7% in the previous year due to heavy reliance on incentives in key markets such as the US.
At the end of March 2019 Nissan and its subsidiaries reported a global workforce of 139,000 people.
Nissan was expected to announce the additional job cuts on 25 July when it releases its financial results for the April-June 2019 quarter.
Its operations in South America and other low margin markets are expected to be affected most by the job cuts.
