Thursday 25 July 2019 9:38 am

Nissan to cut 12,000 jobs as its profits go in reverse

Workers in Nissan’s Sunderland vehicle factory are braced to find out if they are part of the more than 12,000 workers to be laid off globally by the embattled carmaker.

Nissan has said it will slash around 12,500 jobs globally as it looks to rein in costs and reduce its output.

Read More: Nissan forecasts worst earnings in 11 years

It was previously thought only around 4,500 jobs would go.

The Japanese car giant assembles some of its Qashqai SUV models in a plant in Sunderland, but Nissan’s UK spokesperson could not say whether the axe will fall on jobs in the UK.

The UK office pointed out that the next generation Qashqai will be built at the Sunderland, and the new Juke crossover model starts production “imminently “.

The company reported a massive profit drop overnight.

Nissan’s operating profit for the first quarter was nearly wiped out, falling 98.5 per cent to ¥1.6bn (£11.8m).

Nissan pointed to its struggled in the US and Canada where it discounted heavily to keep pace with rivals and gain market share, yet still struggled.

For the full year the company kept its forecast of ¥230bn, a 28% drop from last year.

The poor performance adds to the headaches for the top brass at Nissan, already reeling from the scandal involving former boss Carlos Ghosn.

Read More: Ghosn ‘ran up €11m of suspicious expenses’

Ghosn was last year arrested in Japan and sacked by Nissan on charges of financial misconduct regarding his pay and benefits, which he denies. He was also fired as the chief executive and chairman of the company’s French alliance partner Renault.