Yesterday we reported that Nissan may be cutting up to 10,000 jobs.... we were short by about 2,500. Nissan Motor Company's CEO Hiroto Saikawa said "The results were really more negative than we expected" in a financial briefing at Nissan Headquarters. Operating profit was nearly wiped out, falling to just $14.8 million in the first fiscal quarter ending June 30th. Operating margin shrank from 4.0 percent last year to barely 0.1 percent this year. Global retail volume fell 6.0% to 1.23 million vehicles.
On the back of these poor results. Nissan has annouced job cuts of up to 12,500 worldwide as part of a plan to revive the company. Of that, 6,400 job cuts are already underway with 1,420 jobs lost in the U.S. An additional 6,100 job cuts are planned over the next 4 years. Most of the job cuts will be at plants that are working below capacity.
In the U.S., Nissan is trying to move away from fleet sales and focus on increasing retail sales, with the goal of boosting retail sales by 100,000 units.