Japanese automaker Nissan Motor Co. (NSANY) is cutting more than 10,000 jobs worldwide as its financial losses increase.
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The latest job cuts bring the total workforce reductions announced at Nissan this year to 20,000 positions or 15% of the automotive manufacturers’ global workforce. The struggling automaker warned last month that it would likely record a record $4.74 billion to $5.08 billion net loss for the Fiscal year ended in March of this year.
Nissan is Japan’s third largest automaker. The new job cuts have been announced a day before the company is scheduled to announce its latest financial results on May 13. Management has said that it needs to make its business more resilient and competitive as sales slump in the U.S.
Losing Market Share
Nissan has lost market share due to a lack of gas-electric hybrid vehicles and an ageing line-up of models. The company is also struggling in China, where it is looking to halt a sales slide with the launch of about 10 new vehicles in coming years.
Nissan, which had more than 133,000 employees a year ago, had already been looking to cut 9,000 jobs and reduce its global capacity by 20% as part of a company-wide restructuring. Owing to its weak sales and deteriorating finances, Nissan has cut its profit outlook four times for the Fiscal year that ended this March.
NSANY stock has declined 33% over the past 12 months.
Is NSANY Stock a Buy?
The stock of Nissan Motor Co. currently has only one analyst rating. That rating, by Bernstein, is a Sell recommendation. There are currently no price targets on the stock, which trades on the over-the-counter (OTC) market in New York.
