Nissan to cut 20,000 jobs as carmaker reports €4 billion annual net loss • FRANCE 24 English

Starting now for business. Nucoy joins us here. Things are going from bad to worse for Nissan. Tell us more. Well, Mark, Nissan has announced its full year financial results for fiscal 2024 that ended in March, and the numbers are dismal. Revenue was down as it sold only 3.3 million cars worldwide, about a third of what Toyota sold during that period. Operating profit came in at less than €430 million e down 88% from the previous year as the company burned through cash. This resulting in a staggering annual net loss of over€4 billion e and yuka the big question I suppose now is how is Nissan going to turn around its business? Well, it seems that Nissan now has to focus more on cutting cost than making cars. Under its new restructuring plan, the company will cut 11,000 more jobs on top of the 9,000 announced last autumn, reducing its global workforce by 15%. Seven of its 17 plants will be shut down. It will also reduce the complexity or variety of car parts by 70%. It aims to save around €3 billion euros, but in doing so will suspend new development of future models past 2026 with 3,000 workers just focusing on cost cost cutting. Like other automakers, it also faces tariff uncertainty. CEO Ivan Espinosa acknowledged the immense challenges facing the company. We have a mountain to climb from the losses we are announcing today. As our path forward, the renissan recovery plan is an action-based grounded in reality and driven plan by determined actions. We will reduce our production capacity to 2.5 million by FY27 with the option to increase it by half a million if demand arises. President and CEO of Nissan, Ivan Espinosa. Now the question that comes up now is how did Nissan come to this Yuka? What happened? Well, Nissan’s troubles began decades ago when it had to be saved by Renault. Under Carlos Goon, it returned to profitability, but then he was ousted following his sudden arrest in 2018. Since then, Nissan’s boardroom struggle led to three CEOs in less than six years. In the meantime, it was slow to make meaningful investment. It decided to phase out its popular EV model leave, but its successor, Arya, is not selling well. More recently, merger talks with Honda collapsed. importantly due to Nissan’s refusal to become its subsidiary market. So there we have it for Nissan. We’ll watch how that develops. Let’s have a quick check on what’s happening on the markets. Global stocks edged higher this Tuesday following Monday’s strong rally. In Europe, London ended flat and Paris and Frankfurt closed up 3/10en of a percentage point. Wall Street is a mixed picture right now with the Dow Jones coming back down into the red even as new data showed inflation in the US cooled for a third straight month. coming in at annualized 2.3% in April. Now, in other business news, following a temporary truth in the trade war with China, the US lowered its tariff for so-called deminimous packages. Yeah, dimminimous packages. These are goods that are often shipped directly to US consumers from China from the likes of Xiin and Timu. For a long time, packages under $800 in value went through customs duty-free. But Donald Trump closed that tax loophole as he raised tariffs on Chinese goods to 145% a new duty on dimminimus was set at 120% or a flat fee of $200 as an alternative. It has led to many Chinese merchants suspending shipments to the United States. In an executive order, the US president cut this rate to 54% and the flat fee to $100. But like with the overall tariff that went down to 30%, the duty is still very high compared to just zero just weeks ago. Mark, let’s turn to a uh more expensive commodity, the smartphone. Samsung has released a new phone that’s well really thin. Yes, thin. Thinning. It’s something of a global trend. Apparently, the latest models from top phone makers are slimming down. The latest version of Samsung’s Galaxy S comes in at less than 6 mm thick. The Korean tech giant accelerated its release schedule, partly due to growing uncertainty in the global consumer market caused by the Trump tariffs. Brian Quinn has the details. For the next generation of smartphones, thin is in. Samsung has just unveiled a new version of its flagship phone, the Galaxy S25 Edge. At just 5.8 8 mm thick. It’s nearly 2 1/2 mm thinner than the S25 Ultra and weighs in at 55 g less. It’s part of a growing trend in the market towards shrinking size. Samsung’s placing a bet that the aesthetic of this phone, going after that thin design, is something that’s going to appeal to some of its diehard users. The S25 Edge is very much about a designled product, and in some cases, that means there might be minor compromises on camera and battery. The Edge’s debut comes just four months after Samsung’s last major product line update and months ahead of its typical release schedule. The Korean tech giant’s Rush is likely intended to get out ahead of its chief rival in the high-end smartphone market, Apple, which is expected to release a slim down version of its flagship model, the iPhone 17 Air, in the fall. But it’s also likely intended to get new phones onto shelves and into pockets before the full effects of Donald Trump’s global trade war hit consumers wallets. While Samsung reported growing revenues and profits in the first quarter, the company has also warned that demand is expected to decrease over the rest of the year with tariffs casting further uncertainty on the sector’s outlook. Brian Gen with that report and that’s it from the business desk. Thank you very much. Jukabat with more business in round about an hour’s time.

Things are going from bad to worse for Nissan. Struggling with weak sales and an ageing lineup, the Japanese carmaker has announced a sweeping restructuring plan, aiming to save €3 billion in costs. It plans to cut 15 percent of its global workforce and close seven of its 17 plants worldwide.  Plus, Samsung has released its latest model of Galaxy S that is less than 6mm thick. The Korean tech firm accelerated its release schedule as Donald Trump’s tariffs were threatening to impact consumer spending. 
#Nissan #Financial results #Job cuts

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