Japanese auto manufacturing giant Nissan has plans of sacking about 12,500 employees worldwide by 2022. Out of all the layoffs, India will have a share of 13 percent, which is about 1,710 employees.
The company's website cleared that the job cuts will be executed by 2019 but did not queue any information on the posts being sacked.
According to The Economic Times, Nissan will be cutting down 1,420 employees from the US, 1,000 in Mexico, 830 in Indonesia and about 880 in Japan as an initiative to improve its efficiency.
The 1710 layoffs in India is a part of Nissan's plan that was announced on September 2018 under the Employee Voluntary Separation Scheme to cut cost in the company.
Nissan is facing the beat of the economic slowdown as its figures from the manufacturing unit are jaw-dropping. The manufacturing unit produces about 4.5 lakh automobiles in a year out of which only about 50 percent are sold. The Renault-Nissan collaboration has provided some short term good results in the form of Renault Duster and Kwid but has not performed well in the long run.
The Japanese giant could not make it large with their decade long presence in the market due to multiple failures while competing Maruti Suzuki. Promising sub-brands like Datsun could not perform well in the muscle series due to incompetent features and high pricing. Nissan's last failure was the production of Kicks SUV that kept the company in the back foot by its sales of about 300 units in a year.
Nissan has been losing its brand value due to its high pricing and lesser sales. As per the company filings, some of the Nissan designs have sales lesser than luxury car company in a year.
The Indian automobile industry has been facing hardship because of the slowing economy. The slowdown has resulted in millions of job cuts by the auto-industry, increasing the unemployment levels of the country.