Nissan faces profit plunges decided to cut of 12,500 jobs

Economy 13:54 25.07.2019

Crisis-hit Japanese automaker Nissan said Thursday it would cut 12,500 jobs and announced a plunge in quarterly net profit as it struggles with weak sales and the arrest of its former chief.

The embattled firm has been buffeted by poor performance in the United States and Europe as well as the scandal of financial misconduct charges against former boss Carlos Ghosn.

"We acknowledge the first-quarter results were very tough," chief executive Hiroto Saikawa said.

"We knew the pace of sales would be tough, but I think we have to admit that it was slightly below our expectations," he added.

"But I believe we can fully recover to our expectation levels in the second and third quarter."

Nissan said net profit slumped nearly 95 percent in the April-June quarter due to falling sales and growing costs.

The automaker's bottom line profit dropped to 6.4 billion yen ($59 million) for the three months to June, from 115.8 billion yen a year earlier on sales at 2.37 trillion yen, down 12.7 percent.

"Profitability was negatively impacted by the decrease in revenues and external factors such as raw material costs, exchange rate fluctuations and investments to meet regulatory standards," Nissan said.