Japanese automaker Nissan Motor Co. is reportedly planning to cut 10,000 jobs as the company tries to revamp its business model amid low revenue figures. Industry analysts believe low-profit regions will be affected the most in this regard.
Kyodo News reported that the plan to cut thousands of jobs could hit some South American factories where profits have been declining. Furthermore, the company could try to streamline its production within Japan until its internal issues are resolved.
Nissan has been struggling for the past year as the company suffered from low car sales in the United States. The auto giant already released outlooks on its performance this year, indicating that the company could be cut to almost half in 2019.
Official announcements about the job cuts are expected to be rolled out on Thursday when the company releases its second-quarter earnings report. More details about the factories to be affected are expected to be released by then.
Aside from weak U.S. sales, Nissan is also apparently struggling with management ever since former Chairman Carlos Ghosn was arrested under allegations of financial wrongdoing.
Ghosn's arrest has left a bad impression on the eyes of its biggest shareholder, Renault SA. It remains to be seen if the company will redeem itself following the allegations on its former leader.
CNBC News noted that Renault owns 43 percent of the company's shares. However, the French automaker is reportedly seeking more control of its Japanese counterpart's system. CEO Hiroto Saikawa reportedly said last month that he is looking to promote equality in the partnership.
Now that the partnership is uncertain, industry analysts are expecting Nissan to be faced with more mountains before it can recover completely. Amid the reports of upcoming job cuts, the Japanese firm said it will not respond to speculative news.
Meanwhile, the company is faced with yet another controversy as it was reported on Tuesday that Nissan allegedly chose to ignore government orders to modify its emissions systems to help ease environmental distress.
According to The Guardian, the Driver and Vehicle Standards Agency (DVSA) asked Nissan to revamp its Qashqai model as it was found to have been emitting more nitrogen oxides than the European Union (EU) allows on emissions.
The Japanese auto manufacturer reportedly told the agency that it is focused on "energy and resources on the new models," as it argued that it was impossible "to do a recalibration for existing customers."
In a statement regarding the issue, Nissan stressed that all of its vehicles are in full compliance of current legislation on emissions.
