SEOUL (Reuters) – Nissan Motor Co’s (7201.T) South Korean unit plans to seek applications for voluntary redundancy, a person with knowledge of the matter said on Friday, as the automaker’s shares sank to their lowest in more than a decade.

Nissan on Thursday cut its annual operating profit forecast by 43%. Sources said plans to slash jobs, close manufacturing sites and drop products have been already prompted, as the automaker steps back from an aggressive pursuit of market share championed by former leader Carlos Ghosn.

In addition to Nissan Korea’s plans for voluntary redundancy, some of its around 60 employees have already submitted letters of resignation, the person said, declining to be identified as the issue was sensitive.

“We are committed to driving an efficient organization to take us on a growth path together. As such, we are carefully reviewing our operations setup. We are currently not in the position to share more details. Our primary focus remains providing great products and the highest levels of sales and services to our valued customers,” Nissan said in a statement.

On top of a dim earnings outlook and restructuring at Japan’s No. 2 automaker, Nissan’s South Korean business has also suffered from a diplomatic row between the two countries that has led to consumer boycotts and efforts by Seoul to cut the economy’s reliance on imports from Japan.

In South Korea, Nissan Korea sold 3,049 Nissan brand vehicles in 2019, down 40% from 5,053 vehicles a year earlier, and 2,000 Infiniti vehicles in 2019, down 6% from 2,130 vehicles a year earlier, according to auto registration data from Korea Automobile Importers & Distributors Association.

Reporting by Joyce Lee; Additional reporting by Naomi Tajitsu in Tokyo; editing by David Evans

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

It’s not just you. Zoom is down in some parts of the world

(CNN)Zoom, the video conferencing app that’s become a go-to for many stuck at home during the pandemic, is down in some parts of the world. In the United States, the problem started on the East Coast early Monday and spread…

CNBC anchors brawl in explosive exchange: ‘100,000 people died … And all you did was try to help your friend the President!’

New York (CNN Business)CNBC “Squawk Box” anchors Andrew Ross Sorkin and Joe Kernen clashed on Wednesday, trading a series of ugly jabs in a fiery on-air exchange over each of their responses to the seriousness of the coronavirus pandemic. The…

Caterpillar says it will not give annual salary increases this year

CHICAGO (Reuters) – Caterpillar Inc (CAT.N) on Tuesday said it will not hand out annual salary increases this year as part of cost cut plan to deal with the coronavirus economic fallout. The company also said it will not pay…

Bridgewater, Viking among big hedge funds that added Tesla in fourth quarter before rally

NEW YORK (Reuters) – Billionaire Ray Dalio’s Bridgewater Associates, Viking Global Investors, and Granite Point Capital were among prominent hedge funds placing new bets on electric carmaker Tesla Inc in the fourth quarter, positioning them to gain from its nearly…