Nissan to shed thousands of jobs amid tumbling profit forecasts, but impact on Sunderland plant remains uncertain

What impact the reduction measures will on Nissan’s Sunderland plant is yet to be confirmed, but the announcement will make worrying news in Wearside.

The Japanese car giant plans to scale back production and cut 9,000 jobs across its worldwide operations.

The company today warned it was facing “a severe situation” after forecasting a huge drop in profits for the year, from £2.5billion to £755million.

Nissan said it would not pay dividends to shareholders and was focussing on creating ‘a leaner, more resilient business capable of swiftly adapting to changes in the market’.

Measures will involve cutting production by 20% and axing 9,000 jobs from its 133,000-strong operations.

Nissan employs around 6,000 people in Sunderland, where it makes the Qashqai and Juke SUVs, as well as the electric Leaf, though it is not clear what impact the cuts will have here.

Makoto Uchida, Nissan’s chief executive, said he is personally giving up half of his monthly pay from this month onwards.

“These turnaround measures do not imply that the company is shrinking,” he said.

“Nissan will restructure its business to become leaner and more resilient, while also reorganising management to respond quickly and flexibly to changes in the business environment.

“We [have] an aim to enhance the competitiveness of our products, which are fundamental to our success, and set Nissan back on a path of growth.

“As a cohesive team, we are dedicated to working together to ensure the successful implementation of our plans.”

Nissan and other Japanese car makers have seen brutal competition in China, previously a key market, as the country’s domestic manufacturers produce low-cost, high-tech electric vehicles (EVs).

China’s electric vehicle industry is also seeking to move into other countries around the world, aiming to take a chunk out of markets where Japanese firms had once held dominance.