Nissan Cuts 12,500 Jobs as Net Income Falls 95%

Nissan Motor Co. says it will eliminate 12,500 jobs worldwide and cut its global production capacity 10% by early 2023.

The company’s net income attributable to shareholders plummeted 95% to 6.4 billion yen ($59 million) in the fiscal first quarter ended June 30. Operating profit crashed to a microscopic 1.6 billion yen ($10 million) from 109.1 billion in the same period last year.

The company reports its vehicle sales in April-June fell 6% to 1.23 million units. Net revenue for the period shrank 13% to 2.4 trillion yen ($21.9 billion).

In addition to cutting staff and manufacturing capacity, Nissan plans to trim its product lineup by at least 10% by early 2023. The company says doing so will enhance the competitiveness of surviving core and regionally strategic models by freeing up more funds for their development.

Nissan concedes that it will take time to deliver “substantial” improvements in its dismal performance. In addition to slumping sales, the company has been buffeted by unfavorable exchange rates, high raw material costs and rising investments required to meet regulatory standards.