Nissan to cut around 1,700 jobs in India

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. The company had set a target of reducing of over 6,400 head count 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.

Meanwhile, the automaker's bottom line profit dropped to 6.4 billion yen ($59 million) for the three months to June, from 115.8 billion yen last year, on sales down 12.7 percent at 2.37 trillion yen.

"Profitability was negatively impacted by the decrease in revenues and external factors such as raw material costs, exchange rate fluctuations and investments to meet regulatory standards," Nissan said.

Operating profit fell 98.5 percent, to just 1.6 billion yen, but the firm left its full-year earnings forecast in place, predicting net profit of 170 billion yen on sales of 11.3 trillion yen for the fiscal year to March 2020.