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Nissan to cut 2,500 salaried jobs overseas

  Nissan Motor Co said on Friday it would cut 2,500 salaried jobs overseas and 1,000 temporary positions in Japan as it plans to reduce vehicle production this business year by 200,000 units in Europe, Japan and North America.


Nissan Motor Co on Friday halved its full-year profit forecast in the face of a rising yen, sinking demand in the key US market and a broad-based slowdown in the coming quarters. For the year to March 31, Japan’s No.3 automaker expects operating profit of ¥270 billion ($2.74 billion) instead of a previous forecast of ¥550 billion. That compares to a forecast of ¥435 billion from a poll of 12 brokerages by Reuters Estimates.

It marks the third time in as many years that Nissan would be missing its guidance, cranking up the pressure on Carlos Ghosn, who also is grappling with sinking profitability at Renault SA in his dual-CEO role at the Franco-Japanese alliance. Nissan lowered its net profit forecast to ¥160 billion from ¥340 billion. Nissan, held 44% by Renault, said it was now not sure what its dividend payout would be for this business year. It had previously forecast ¥42 per share.

Nissan’s shares fell as low as ¥400 this week -- down two-thirds from this year’s high and below the levels in 1999 when Ghosn arrived from Renault to help rescue the near-bankrupt company. Shares of Nissan are down 62% in the year to date, underperforming the Tokyo’s transport sub-index, which has fallen 48%.

Nissan said that it now is not sure about the size of its dividend payout for the current business year to March 2009. Previously it had forecast a payout of ¥42 per share. (Reuters)