Nissan set to cut 9,000 jobs globally as operating profit forecast slashed by 70%

Nissan has stated that it will be cutting 9,000 jobs globally while throttling back production by 20 per cent amid sweeping cost-saving measures.

The Japanese carmaker cut its operating profit forecast this morning by 70 per cent to 150bn yen, or around £754m. It also plans to sell up to 10 per cent of Mitsubishi Motors as a way of boosting funds. In the first half of the year, global sales fell 3.8% and operating profit in Q2 was down 85%.

The announced cuts cover seven per cent of the brand’s global employees, which currently stands at more than 133,000 people worldwide.

However, Nissan has yet to announce what these changes could mean for its UK-based operations. Its production site in Sunderland currently builds a number of its core models including the Qashqai and Juke, and as of June last year, has a workforce of around 6,000 people.

Nissan recently confirmed that it would be building electric versions of the Qashqai, Juke and Leaf at Sunderland amid its electrification plans.

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 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.”

The PA news agency has approached Nissan GB for comment.