Nissan to cut 9,000 jobs in global workforce as profits slump

Nissan has announced plans to cut 9,000 jobs in its global operations after reporting a big drop in sales, but it is not clear how the cuts will affect its Sunderland plant.

The Japanese firm is planning to reduce production by 20% and it will cut around 6.5% of its workforce. Leaders at Nissan’s operations in Sunderland declined to add to the statement from the company’s global headquarters when asked how its North East operations would be affected.

The cuts have come after revenue fell sharply from 336.7bn yen (£1.7bn) last year to 32.9bn yen (£165.6m). The company has revised down its forecast for the financial year and its global CEO has volunteered to halve his salary.

Describing its immediate prospects as a “severe situation”, it said that “urgent measures to turnaround its performance and create a leaner, more resilient business” were needed. Nissan is looking to cut global costs by 300bn yen (£1.5bn) and said it would appoint a chief performance officer responsible for sales and profit to make sure the changes were quickly implemented.

Nissan president and CEO Makoto Uchida said: “These turnaround measures do not imply that the company is shrinking. Nissan will restructure its business to become leaner and more resilient, while also reorganizing management to respond quickly and flexibly to changes in the business environment.

“We an aim to enhance the competitiveness of our products, which are fundamental to our success, and set Nissan back on a path of growth. As a cohesive team, we are dedicated to working together to ensure the successful implementation of our plans.”

Nissan employs around 6,000 people at its Sunderland plant, making the Qashqai, Juke and Leaf vehicles. The company said its global sales volumes had fallen to 1.6m units and its profitability was hit by higher costs in manufacturing and other parts of the business, particularly in the US. Along with a number of other automotive companies, it has been struggling with sales in China and the US.

It has also announced plans to sell up to 10% of its stake in Mitsubishi Motors to raise up to 68.6bn yen (£342m).

Commenting on the announcment, North East mayor Kim McGuinness said: “We’re in touch with Nissan to understand if today’s global announcement affects jobs here

“We know the future of Nissan’s factory is secure as a home for electric car production. We’ve invested in that. Our priority is to keep automotive jobs in our region.”