Nissan will cut 12,500 jobs after its profits plunged 99%

Nissan warned last quarter that it was at "rock bottom...

Posted: Jul 25, 2019 3:41 PM
Updated: Jul 25, 2019 3:42 PM

Nissan warned last quarter that it was at "rock bottom." Now it's even more clear that its problems aren't going away anytime soon.

Japan's second biggest automaker on Thursday said profits were almost completely wiped out in the first quarter of its fiscal year. Operating profit plunged 99% in the quarter compared to a year earlier.

Revenue, meanwhile, dropped nearly 13% compared to a year ago.

Nissan said it will slash roughly 12,500 jobs from its workforce worldwide. That's more than twice as many as the company was reportedly expecting to cut in May.

The company added it will reduce its product lineup by at least 10% by the end of fiscal year 2022.

"This is a crude description, but loss-making overseas facilities would be the main targets," CEO Hiroto Saikawa said during Thursday's earnings presentation. He also revealed that the company had already suspended manufacturing lines in Indonesia and Spain.

Saikawa declined to specify other locations that will be affected by the cuts. Earlier this year Nissan ended the production of two luxury vehicles in the United Kingdom, dealing yet another blow to an industry that has been rocked by weak sales and fears over Brexit.

Nissan, like other global carmakers, faces severe challenges. A sluggish global economy has hurt sales, and the US-China trade war remains a big risk for manufacturers. New emission standards, driven in part by the climate crisis, have also disrupted the industry.

But Nissan has also been grappling with problems of its own. It has been losing market share in the United States and Europe. In the first quarter, for example, the company sold 351,000 units in the United States, giving it 7.9% of the market. It had 8.1% a year earlier.

Nissan sales in Europe, including Russia, fell more than 16% in the quarter compared to a year ago.

The company is also still trying to move on from the dramatic arrest last year of former chairman Carlos Ghosn, whose legal troubles in Tokyo are far from over.

Though he has denied the charges against him, Ghosn's indictments have placed enormous strain on the alliance he created between Nissan, Renault and Mitsubishi Motors. All three companies have renewed their commitment to the partnership, but the tensions have not gone away.

Huntsville/Redstone
Partly Cloudy
71° wxIcon
Hi: 74° Lo: 47°
Feels Like: 71°
Muscle Shoals
Partly Cloudy
73° wxIcon
Hi: 74° Lo: 43°
Feels Like: 73°
Huntsville/Madison
Partly Cloudy
71° wxIcon
Hi: 72° Lo: 43°
Feels Like: 71°
Decatur
Partly Cloudy
72° wxIcon
Hi: 75° Lo: 45°
Feels Like: 72°
Fort Payne
Partly Cloudy
70° wxIcon
Hi: 72° Lo: 44°
Feels Like: 70°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Cases: 522512

Reported Deaths: 10790
CountyCasesDeaths
Jefferson755371494
Mobile39129799
Madison34124500
Tuscaloosa25408444
Montgomery24059573
Shelby23225242
Baldwin20730302
Lee15638166
Calhoun14358311
Morgan14171273
Etowah13705348
Marshall12012220
Houston10416279
Elmore10024203
Limestone9862148
Cullman9509191
St. Clair9486236
Lauderdale9280233
DeKalb8762183
Talladega8127173
Walker7151276
Autauga6763106
Jackson6762110
Blount6532133
Colbert6236132
Coffee5436113
Dale4781111
Russell431239
Franklin421382
Chilton4130110
Covington4069115
Tallapoosa3922148
Escambia390374
Dallas3528150
Chambers3519122
Clarke347360
Marion3076100
Pike306676
Lawrence296395
Winston273272
Bibb256761
Marengo248561
Geneva246475
Pickens233259
Barbour227155
Hale218675
Butler213268
Fayette209660
Henry188444
Cherokee182744
Randolph177841
Monroe173140
Washington165538
Macon156548
Clay150255
Crenshaw149557
Cleburne147041
Lamar140034
Lowndes137353
Wilcox124727
Bullock122040
Conecuh109728
Perry107726
Sumter103332
Coosa99428
Greene91434
Choctaw58824
Out of AL00
Unassigned00

Tennessee Coronavirus Cases

Cases: 835842

Reported Deaths: 12081
CountyCasesDeaths
Shelby930851587
Davidson88030924
Knox49813624
Hamilton43402485
Rutherford42319420
Williamson27545216
Sumner23492341
Montgomery19623224
Wilson18472229
Out of TN1803295
Unassigned16760132
Sullivan16184287
Blount15180194
Bradley14599147
Washington14177242
Maury13211169
Sevier13166175
Putnam11168173
Madison10789241
Robertson9607130
Anderson8627171
Hamblen8498171
Greene7739152
Tipton7226104
Coffee6831121
Dickson6734109
Cumberland6568127
Carter6468156
Bedford6426129
Gibson6402144
McMinn636597
Roane6191102
Jefferson6073121
Loudon601669
Lawrence580686
Hawkins5781106
Monroe570995
Warren551381
Dyer5361104
Franklin508688
Fayette492178
Obion450296
Cheatham444454
Cocke443798
Rhea431275
Lincoln430663
Marshall411158
Campbell409662
Weakley402862
Giles395399
Henderson372975
Macon358077
Carroll357582
White354868
Hardin349766
Hardeman346464
Lauderdale314444
Henry312475
Marion309946
Claiborne306273
Scott305545
Overton296961
Wayne294334
Hickman280546
McNairy276854
DeKalb275653
Smith274838
Haywood268361
Grainger259149
Trousdale249022
Morgan246039
Fentress238546
Johnson231638
Bledsoe209711
Chester209451
Crockett201048
Polk200024
Unicoi194549
Cannon188931
Union186034
Grundy177933
Humphreys174221
Lake169526
Sequatchie166728
Benton163240
Decatur157338
Lewis155826
Meigs134823
Stewart130828
Jackson129935
Clay109031
Houston108533
Perry105728
Moore100017
Van Buren83421
Pickett75624
Hancock54912

Community Events