Nissan Motor Co plans to expand job cuts to more than 10,000 to help turn around its business, a person with direct knowledge of the matter said yesterday, as profit continues to plunge while the automaker grapples with management upheaval.
The global plan includes the 4,800 job cuts announced in May and would mostly be at factories overseas with low utilization rates, the person said.
It would be announced along with financial results today, said the person, who declined to be identified, as the information was still private.
Nissan declined to comment on the job cuts.
Analysts expect Nissan to post one of its weakest quarterly performances since the 2008 global financial crisis when it announces its first-quarter earnings.
The Nikkei business daily yesterday reported that the automaker would report operating profit of “several billion yen” for the quarter, about a 90 percent drop from ￥109.1 billion (US$1 billion) a year earlier.
Analysts estimate a decline of 64 percent.
The job cuts, exceeding 7 percent of Nissan’s 138,000-strong workforce, come as it struggles to improve dismal profit margins in the US, a key market where former chairman Carlos Ghosn for years pushed to aggressively grow market share during his time as chief executive.
The latest job cuts also highlight the extent of problems facing chief executive Hiroto Saikawa, who is also grappling with fractured relations with French alliance partner Renault SA following the arrest of their shared former chairman.
Ghosn has been charged with financial misconduct and denies wrongdoing.
In May, Nissan forecast a 28 percent plunge in annual operating profit, adding to a 45 percent fall in the previous year, putting the automaker on course for its weakest earnings in 11 years.
The extended job cuts were first reported by Kyodo news agency late on Tuesday.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to