Nissan is fighting to rein-in its operations after years of aggressive expansion under former chairperson Carlos Ghosn, ousted last year in a dramatic scandal that shook the industry.
The planned job cuts over the next few years include the 4800 detailed in May and will mostly be at factories overseas with low utilisation rates, a person with direct knowledge of the matter said. Nissan declined to comment on the job cuts. It said a Nikkei business daily report that it suffered roughly a 90percent year-on-year drop in first-quarter operating profit was “broadly accurate”.
Nissan is struggling to improve weak profit margins in the US, a key market where Ghosn for years pushed to aggressively grow market share during his time as chief executive.
Years of heavy discounting to grow sales in the world's second-biggest car market have left Nissan with falling demand for the Altima sedan and other models, a cheapened brand image, low resale values, and a nearly battered bottom line.