Nissan will cut 12,500 jobs as its profits are wiped out - CNN

Japan's second biggest automaker on Thursday said profits were almost completely wiped out in the first quarter of its fiscal year. Operating profit plunged 99% in the quarter compared to a year earlier.

Revenue, meanwhile, dropped nearly 13% compared to a year ago.

Nissan (NSANF) said it will slash roughly 12,500 jobs from its workforce worldwide. That's more than twice as many as the company was reportedly expecting to cut in May.

The company added it will reduce its product lineup by at least 10% by the end of fiscal year 2022.

The global auto industry has the worst kind of problems

Nissan, like other global carmakers, faces severe challenges. A sluggish global economy has hurt sales, and the US-China trade war remains a big risk for manufacturers. New emission standards, driven in part by the climate crisis, have also disrupted the industry.

But Nissan has also been grappling with problems of its own. It has been losing market share in the United States and Europe, and it's still trying to move on from the dramatic arrest last year of former chairman Carlos Ghosn, whose legal troubles in Tokyo are far from over.

Though he has denied the charges against him, Ghosn's indictments have placed enormous strain on the alliance he created between Nissan, Renault (RNLSY) and Mitsubishi Motors. All three companies have renewed their commitment to the partnership, but the tensions have not gone away.

This story will be updated.

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