Image Source: AsiaOne
YOKOHAMA - Japanese car maker Nissan Motor Co said it is axing 12,500 jobs and warned a quick turnaround in its performance was not imminent after reporting its quarterly profit was nearly wiped out. The announcement on Thursday shows how a crisis - brought about by sluggish sales and rising costs - is worsening at Japan's No. 2 automaker even as it tries to recover from a financial misconduct scandal surrounding ousted Chairman Carlos Ghosn. Nissan, which said the job cuts will be made globally by 2022, added that it will reduce global production capacity and its product line-up by about 10 per cent by the end of fiscal 2022. The automaker had 138,000 employees globally as of March 2018. Its first-quarter operating profit plunged 98.5 per cent to 1.6 billion yen (S$20.2 million) as it continues to struggle in North America, a key market where it has been stung by mounting costs of vehicle discounts to keep up with rivals. Years of heavy discounting to grow sales has left Nissan with a cheapened brand image and low vehicle resale values, while the costs to offer high discounts have hit its bottom line.