Nissan to Cut 12,500 Jobs as its net profit in the April-June quarter is down 94.5% from a year earlier

Japanese car giant Nissan has said it will cut 12,500 jobs around the world, more than double the amount previously announced.

It will reduce its production capacity and the number of models it produces by 10% by the end of 2022, but it did not say where the cuts will fall.

It comes as the firm tries to shore up its finances amid weakening sales.

Union sources said they were hopeful Nissan’s Sunderland car plant would escape the cuts.

In May, it announced job losses of 4,800, which are included in the new total.

On Thursday, the firm announced a 94.5% fall in net profit for the first quarter of 2019 – one of its worst quarterly performances in a decade.

Nissan has been struggling in the US, a key market, where it has been heavily discounting to keep up with sales by rivals.

It also reported first-quarter sales falls in Europe, Asia and Oceania, Latin America, the Middle East and Africa.

The firm is reining in its operations after years of expansion under former chairman Carlos Ghosn, who was ousted last year after being accused of financial crimes.

In a news conference, chief executive Hiroto Saikawa said the job cuts would account for a “big portion” of the savings it was trying to make.

Of the 12,500 job losses, 6,400 have already been implemented at eight locations, he said.

www.bbc.com/news/business-49109307