TOKYO, July 25 (Xinhua) -- Nissan Motor Co. on Thursday said over the next three years it will cut 12,500 jobs as part of the firm's cost-cutting initiatives, as the automaker announced its net profit for the April-June quarter plummeted 94.5 percent.
Employees at factories overseas that are not turning a profit will lose their jobs, including those in Indonesia and Spain, with Nissan CEO Hiroto Saikawa telling a press briefing on the matter that the company's restructuring will help profitability.
As for its outlook, the Yokohama-based automaker said it is now targeting sales of 14.5 trillion yen (134 billion U.S. dollars) in fiscal 2022, up from 13 trillion yen (119.94 billion U.S. dollars).
Nissan posted a group net profit of 6.38 billion yen (58.89 million U.S. dollars), down from 115.83 billion yen (1.06 billion U.S. dollars) in the same period last year, in the three months ended June 30, Nissan said.
Its group operating profit fell 98.5 percent to 1.61 billion yen (14.84 million U.S. dollars) on sales of 2.37 trillion yen (21.85 billion U.S. dollars), down 12.7 percent, in the quarter, Nissan also said.
"The first-quarter results were worse than expected. I hope in two years' time we will return to recovery," Saikawa told the press briefing.
Nissan said it forecasts its group net profit to fall 46.7 percent to 170 billion yen (1.56 billion U.S. dollars) and its group operating profit is expected to decline 27.7 percent to 230 billion yen (2.12 billion U.S. dollars) on sales of 11.3 trillion yen (104.27 billion U.S. dollars), down 2.4 percent.
