Recently, Nissan has announced it will dismiss more than 10,000 employees globally in the upcoming three years. The move to lay off workers arrives after announcing first-quarter results of its financial year. On Thursday, the company had announced the results which reveal a 98.5% fall in operating profit as that of 2018. Nissan’s sales in Europe and U.S. dived, causing a million-dollar loss. The Japanese automaker has not gained or say profit almost wiped out in the Q1. It seems like the company seeks to restore and boost its business by cutting jobs. Currently, Nissan’s UK workplace includes around 8,000 people in the UK. Besides, about 139,000 people across the globe work for the carmaker.
Still, it remains unclear which region will experience job cuts. The cuts are larger than the number the company had announced. Before this, in May that it would cut around 4,800 jobs. Now the company aims to axe around 12,500 jobs. On the other hand, the Japanese carmaker has experienced a massive fall in sales from various major markets. So the company aims to reduce its production capacity by about 10% in the upcoming few years.
Since last year Nissan is going through a challenging period. It has seen the detention of Ex-chairman Carlos Ghosn who has been claimed for various misconducts. After that, the Japanese automaker fired Mr. Carlos in November 2018. The executive led Nissan and its partnership with Renault, a French carmaker, for around two decades. Mr. Carlos has denied accepting any of the claims. Now the Ex-Nissan chairman is waiting for trial. While the company is facing a massive fall in sales, mainly in sectors like the U.S. and Japan. It is facing intense pressure to reduce price in order to compete with other carmakers. Even more, Brexit has affected companies having UK operations.