Nissan will lay off 12,500 employees following 95 percent drop in Q1 net income

Polycount

TS Evangelist
Staff member

It isn't just the game industry that likes to lay off large portions of its work force -- the car industry has started to adopt that business practice, as well. As announced by Nissan today, the carmaker will cut its total workforce by 12,500 employees over the course of the next three years.

Though that's a massive amount of lost jobs, it's not hard to see why Nissan has made this decision. In Nissan's latest financial report, the company says it's "operating income" has dropped by an astounding 98 percent, and their overall net income has dipped by 95 percent.

That is a tremendous blow to Nissan's bottom line, and it'll be quite difficult for the company to recover from this state. However, Nissan chief executive Hiroto Saikawa believes it's possible.

"We knew the pace of sales would be tough, but I think we have to admit that it was slightly below our expectations," he said in a statement. "But I believe we can fully recover to our expectation levels in the second and third quarter." It remains to be seen whether or not Saikawa can follow up on those plans.

In more concrete numbers, Nissan's net income in Q1 2019 was only about 6.4 billion yen ($59 billion). By contrast, their net income during the same period of 2018 was roughly 115.8 billion yen ($1 billion).

The primary reasons for Nissan's lower profit this year are exchange rate fluctuations, "investments to meet regulatory standards," and high raw material costs. By laying off thousands of employees over the coming years, Nissan hopes to "streamline" its production and cut costs while it weathers the storm.

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qking

TS Booster
"In more concrete numbers, Nissan's net income in Q1 2019 was only about 6.4 billion yen ($59 billion). By contrast, their net income during the same period of 2018 was roughly 115.8 billion yen ($1 billion)."

I think those numbers are backwards. Should read:

“In more concrete numbers, Nissan's net income in Q1 2019 was only about 6.4 billion yen ($1 billion). By contrast, their net income during the same period of 2018 was roughly 115.8 billion yen ($59 billion).”
 
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toooooot

TS Evangelist
Aside from their cars being ugly, I wonder what else could go wrong for them to cause that.
Is it just me or majority of people perceive that their cars are less reliable compared to Toyo Honda and Korean runner ups?

Oh well, not a big loss. Infinity are interesting at least, in appearance and being so differently looking from other cars.

I am a fan of interior of older m models. But then after researching I found out that there are some serious issues plaguing some model years. And that's when I decided to not own one.
 

Theinsanegamer

TS Evangelist
Aside from their cars being ugly, I wonder what else could go wrong for them to cause that.
Is it just me or majority of people perceive that their cars are less reliable compared to Toyo Honda and Korean runner ups?

Oh well, not a big loss. Infinity are interesting at least, in appearance and being so differently looking from other cars.

I am a fan of interior of older m models. But then after researching I found out that there are some serious issues plaguing some model years. And that's when I decided to not own one.
They earn that perception. Their constant push for CVTs has bitten them in the *** hard. Those CVTs are failure prone, and every year we hear the same thing, another model year added to the list as eligeable for under warranty replacement, andother model year added onto class action lawsuits, and another claim by nissan that THIS TIME, they have fixed the issue. This has been going on for a decade now, and has ruined the perception of japanese quality.

Granted, datsun never had that. In the 80s and 90s they were regarded as the chrysler of japan, with cool designs but subpar longevity. In the early 2000s nissan attempted to fix this, but now has slid back. Their focus on ugly bubble cars and CVTs has also alienated the enthusiast market for nissan, which has resulted in word of mouth essentially evaporating. And their former CEO dude was hyper-focused on market share, and thus relentlessly pursued rental and fleet purchases.

This is the end result, large sales but no profit. The only thing nissan has that sells well is the rouge, which is getting shown up by newer rivals, and the frontier, which is almost 16 years old and is getting hammered by the new ranger and tacoma. Their sedans are plummeting, their sports cars are non existent, the titan has been a huge flop, ece.

I have a 2005 sentra, love it, wouldnt touch a modern nissan. not when VW offers much spunkier small cars with better fuel economy and vastly superior interiors, and the japanese and Koreans have then whipped in reliability.
 
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Uncle Al

TS Evangelist
Aside from their cars being ugly, I wonder what else could go wrong for them to cause that.
Is it just me or majority of people perceive that their cars are less reliable compared to Toyo Honda and Korean runner ups?

Oh well, not a big loss. Infinity are interesting at least, in appearance and being so differently looking from other cars.

I am a fan of interior of older m models. But then after researching I found out that there are some serious issues plaguing some model years. And that's when I decided to not own one.
They earn that perception. Their constant push for CVTs has bitten them in the *** hard. Those CVTs are failure prone, and every year we hear the same thing, another model year added to the list as eligeable for under warranty replacement, andother model year added onto class action lawsuits, and another claim by nissan that THIS TIME, they have fixed the issue. This has been going on for a decade now, and has ruined the perception of japanese quality.

Granted, datsun never had that. In the 80s and 90s they were regarded as the chrysler of japan, with cool designs but subpar longevity. In the early 2000s nissan attempted to fix this, but now has slid back. Their focus on ugly bubble cars and CVTs has also alienated the enthusiast market for nissan, which has resulted in word of mouth essentially evaporating. And their former CEO dude was hyper-focused on market share, and thus relentlessly pursued rental and fleet purchases.

This is the end result, large sales but no profit. The only thing nissan has that sells well is the rouge, which is getting shown up by newer rivals, and the frontier, which is almost 16 years old and is getting hammered by the new ranger and tacoma. Their sedans are plummeting, their sports cars are non existent, the titan has been a huge flop, ece.

I have a 2005 sentra, love it, wouldnt touch a modern nissan. not when VW offers much spunkier small cars with better fuel economy and vastly superior interiors, and the japanese and Koreans have then whipped in reliability.
Good point, just look at how many years it took for them to realize their 3rd party supplier for the CVT's was building a terrible product ... oh wait, they DID realize it, which is why they stopped selling extended warranties on engine/drive trains. Their once solid mantra of building s cheaper vehicle was lost when they also tried to keep up with all the technology "junk" that isn't necessary for a dependable car.

Sooner or later one of the car companies is going to realize the benefit of building a "simple" car again without all the junk. That one could easily be 1/3rd to 1/2 the current price point and will capture a significant part of the market for those that can't afford cars that start at or over $20,000.

Especially in a marketplace that is rapidly approaching it's first $100K pick up truck!
 
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mbrowne5061

TS Evangelist
Aside from their cars being ugly, I wonder what else could go wrong for them to cause that.
Is it just me or majority of people perceive that their cars are less reliable compared to Toyo Honda and Korean runner ups?

Oh well, not a big loss. Infinity are interesting at least, in appearance and being so differently looking from other cars.

I am a fan of interior of older m models. But then after researching I found out that there are some serious issues plaguing some model years. And that's when I decided to not own one.
They earn that perception. Their constant push for CVTs has bitten them in the *** hard. Those CVTs are failure prone, and every year we hear the same thing, another model year added to the list as eligeable for under warranty replacement, andother model year added onto class action lawsuits, and another claim by nissan that THIS TIME, they have fixed the issue. This has been going on for a decade now, and has ruined the perception of japanese quality.

Granted, datsun never had that. In the 80s and 90s they were regarded as the chrysler of japan, with cool designs but subpar longevity. In the early 2000s nissan attempted to fix this, but now has slid back. Their focus on ugly bubble cars and CVTs has also alienated the enthusiast market for nissan, which has resulted in word of mouth essentially evaporating. And their former CEO dude was hyper-focused on market share, and thus relentlessly pursued rental and fleet purchases.

This is the end result, large sales but no profit. The only thing nissan has that sells well is the rouge, which is getting shown up by newer rivals, and the frontier, which is almost 16 years old and is getting hammered by the new ranger and tacoma. Their sedans are plummeting, their sports cars are non existent, the titan has been a huge flop, ece.

I have a 2005 sentra, love it, wouldnt touch a modern nissan. not when VW offers much spunkier small cars with better fuel economy and vastly superior interiors, and the japanese and Koreans have then whipped in reliability.
Good point, just look at how many years it took for them to realize their 3rd party supplier for the CVT's was building a terrible product ... oh wait, they DID realize it, which is why they stopped selling extended warranties on engine/drive trains. Their once solid mantra of building s cheaper vehicle was lost when they also tried to keep up with all the technology "junk" that isn't necessary for a dependable car.

Sooner or later one of the car companies is going to realize the benefit of building a "simple" car again without all the junk. That one could easily be 1/3rd to 1/2 the current price point and will capture a significant part of the market for those that can't afford cars that start at or over $20,000.

Especially in a marketplace that is rapidly approaching it's first $100K pick up truck!
All I want out of life is an all-electric 4runner (when the range is acceptable, and with true 4WD still), with a bluetooth stereo system. That is it. I don't need backup cameras, auto-pilots, nav systems, heated seats, entertainment systems, etc. Just 4 wheels that will go through anything, and a stereo that will let me take/make phone calls and pipe in music from my phone. That's it.
 

trparky

TS Evangelist
All I want out of life is an all-electric 4runner (when the range is acceptable, and with true 4WD still), with a bluetooth stereo system. That is it. I don't need backup cameras, auto-pilots, nav systems, heated seats, entertainment systems, etc. Just 4 wheels that will go through anything, and a stereo that will let me take/make phone calls and pipe in music from my phone. That's it.
Exactly. I don't want my car's dashboard to look like the bridge of the USS Enterprise (NCC-1701-E). Although the backup camera is something that is mandated by the US Government.

Backup cameras now required in new cars in the U.S. | USA Today
 
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hk2000

TS Booster
That is almost impossible to believe. What they should do, is fire everybody in their financial dept. because they obviously made a huge mistake in their calculations somewhere!
 
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hk2000

TS Booster
Aside from their cars being ugly, I wonder what else could go wrong for them to cause that.
Is it just me or majority of people perceive that their cars are less reliable compared to Toyo Honda and Korean runner ups?

Oh well, not a big loss. Infinity are interesting at least, in appearance and being so differently looking from other cars.

I am a fan of interior of older m models. But then after researching I found out that there are some serious issues plaguing some model years. And that's when I decided to not own one.
They earn that perception. Their constant push for CVTs has bitten them in the *** hard. Those CVTs are failure prone, and every year we hear the same thing, another model year added to the list as eligeable for under warranty replacement, andother model year added onto class action lawsuits, and another claim by nissan that THIS TIME, they have fixed the issue. This has been going on for a decade now, and has ruined the perception of japanese quality.

Granted, datsun never had that. In the 80s and 90s they were regarded as the chrysler of japan, with cool designs but subpar longevity. In the early 2000s nissan attempted to fix this, but now has slid back. Their focus on ugly bubble cars and CVTs has also alienated the enthusiast market for nissan, which has resulted in word of mouth essentially evaporating. And their former CEO dude was hyper-focused on market share, and thus relentlessly pursued rental and fleet purchases.

This is the end result, large sales but no profit. The only thing nissan has that sells well is the rouge, which is getting shown up by newer rivals, and the frontier, which is almost 16 years old and is getting hammered by the new ranger and tacoma. Their sedans are plummeting, their sports cars are non existent, the titan has been a huge flop, ece.

I have a 2005 sentra, love it, wouldnt touch a modern nissan. not when VW offers much spunkier small cars with better fuel economy and vastly superior interiors, and the japanese and Koreans have then whipped in reliability.
I don't know, maybe I'm just lucky, but I have a Nissan Rogue 2009 with CVT that still runs like a charm.
 

Xcalibur3

TS Rookie
"In more concrete numbers, Nissan's net income in Q1 2019 was only about 6.4 billion yen ($59 billion). By contrast, their net income during the same period of 2018 was roughly 115.8 billion yen ($1 billion)."

I think those numbers are backwards. Should read:

“In more concrete numbers, Nissan's net income in Q1 2019 was only about 6.4 billion yen ($1 billion). By contrast, their net income during the same period of 2018 was roughly 115.8 billion yen ($59 billion).”
The writer incorrectly stated first number 6.4 billion yen is roughly 59 million $ (NOT BILLION), 115.8 billion yen is actually 1 billion $ which was correct.
 

Graloc25

TS Member
All I want out of life is an all-electric 4runner (when the range is acceptable, and with true 4WD still), with a bluetooth stereo system. That is it. I don't need backup cameras, auto-pilots, nav systems, heated seats, entertainment systems, etc. Just 4 wheels that will go through anything, and a stereo that will let me take/make phone calls and pipe in music from my phone. That's it.
Exactly. I don't want my car's dashboard to look like the bridge of the USS Enterprise (NCC-1701-E). Although the backup camera is something that is mandated by the US Government.

Backup cameras now required in new cars in the U.S. | USA Today
US Gov. had to mandate backup cameras so you can see how fast the Trump's going backwards.