Nissan plans to slash around 1,700 jobs in India as part of global restructuring process

New Delhi: Japanese auto major Nissan plans to cut over 1,700 jobs in India, mostly in manufacturing operations, as part of a global exercise to reduce headcount by over 6,000 across different locations.

In an analyst presentation, the company said it aims to cut over 6,100 jobs across six sites globally between FY2020 and FY2022.

 Nissan plans to slash around 1,700 jobs in India as part of global restructuring process

Representational image. AFP

The company had set a target of reducing of over 6,400 headcount over 8 locations globally in 2018-2019.

As per industry sources, over 1,700 jobs could be impacted at Renault-Nissan alliance plant in Chennai as part of the ongoing process.

When contacted Nissan Motor India declined to comment.

The Renault-Nissan alliance plant and R&D facility account for around 40,000 direct and indirect jobs in Tamil Nadu. The plant has an installed capacity to produce 4.8 lakh units per annum.

On Thursday, the crisis-hit Japanese automaker said it would cut 12,500 jobs and announced a plunge in quarterly net profit as it struggles with weak sales and the arrest of its former chief.

The embattled firm has been buffeted by poor performance in the United States and Europe as well as the scandal of financial misconduct charges against former boss Carlos Ghosn.

"We acknowledge the first-quarter results were very tough," chief executive Hiroto Saikawa said.

Saikawa said 6,400 job cuts had already been carried out in the 2018 and 2019 fiscal years at eight locations.

He declined to identify the six locations at which the firm plans to make another 6,100 cuts between fiscal 2020-2022, saying some factories would close while others would operate with fewer production lines.

With inputs from AFP

Updated Date: Jul 26, 2019 17:28:13 IST