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Latest NewsJob creation and lossesRedundancy

Nissan to cut 10% of global workforce

by Ashleigh Webber 24 Jul 2019
by Ashleigh Webber 24 Jul 2019 Shutterstock
Shutterstock

Nissan is to cut 12,500 jobs globally  – almost 10% of its workforce – as it reports one of its worst quarterly financial performances in a decade.

The Japanese car manufacturer – which employs around 139,000 people worldwide, 8,000 of whom are in the UK – will reduce production capacity and the number of models it manufactures by 10% by the end of 2022, which will affect the number of people it employs.

The majority of its UK workforce are employed at its Sunderland manufacturing plant. Although Nissan has not yet said where the job cuts will be made, union sources told the BBC they believe the plant will not be affected.

Earlier this month it ceased production of its Infiniti brand in Sunderland, putting 250 jobs at risk. Those affected by the changes at the factory are expected to be redeployed.

Car manufacturing

Ford ‘to close Bridgend site’ by September 2020

Honda confirms 2021 closure of Swindon manufacturing plant

The 12,500 job losses include 4,800 which were announced in May.

In a news conference, Nissan president and CEOs Hiroto Saikawa  said it has started reducing production at eight sites worldwide and expects to have cut 6,400 jobs by the end of March 2020.

Some factories in South America and other regions where Nissan has low profitability are likely to be affected.

The manufacturer has been hit by a drop in sales in the US and Europe and it is restructuring its management team following the arrest of its former chairman Carlos Ghosn for alleged financial misconduct. Ghosn was later released on bail.

Many car manufacturers have reported weak or falling demand worldwide. Last month Ford announced around 12,000 jobs across Europe by the end of 2020, which it is hoping to achieve through voluntary redundancy, while Honda said it would close its Swindon plant by 2021 with the loss of 3,500 jobs.

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This article was updated on 25 July 2019.

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Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

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