The Strategist

Nissan to lay off more than 10 thousand employees

07/24/2019 - 09:36

Japanese carmaker Nissan Motor Co Ltd plans to lay off more than 10 thousand employees to improve the company's situation, Reuters reports, citing a source. This will be announced along with the financial results on Thursday, July 25th. Basically, the dismissals will affect foreign enterprises with weak performance.

Last year, Nissan's operating profit fell by 45%. In May, the auto concern predicted a further drop of 28%. In this case, the company's revenues will be the lowest in 11 years.

According to the agency, the stated figure for layoffs is 7% of all Nissan employees, whose number is 138 thousand. This indicates serious problems faced by the company. The company, in particular, is forced to re-build its work with Renault because of the scandal over arrest of Carlos Ghosn.

Recall, Carlos Ghosn was arrested in Japan in November 2018 on charges of financial fraud while working for Nissan. After some time, he was deprived of the post of chairman of the board in Nissan, Mitsubishi and Renault. In April, he was released from custody and sent under house arrest on bail of $ 4.5 million.