TOKYO — Nissan Motor intends to cut about 12,500 jobs by the end of March 2023, slashing nearly 10% of its global workforce of about 130,000, the Japanese automaker announced on Thursday.
The staff reduction will include workers who accept early retirement packages, the company said.
“We have already begun stopping production lines and making job cuts at eight of our operation points,” CEO Hiroto Saikawa said at the automaker’s earnings announcement. “We are looking at six additional locations.”
Saikawa downplayed the reductions. “Although we are cutting 12,500 jobs,” he said, “globally our manpower is 10 times that.”
The same day, Nissan announced that its consolidated operating income dropped 99% on the year for the April-June quarter, to about 1.6 billion yen ($14.8 million).
Nissan in May had revealed a plan to jettison 4,800 jobs. But a serious slump in sales, especially in the crucial U.S. market, has convinced management that deeper cuts are necessary to spark a turnaround.