Nissan Motor Co. Ltd. is planning to launch a voluntary redundancy program in South Korea as part of a wider cost-cutting plan, Reuters reported Feb. 14, citing sources.
About 60 employees handed in their resignations before the opening of the program, the report said. Nissan said it is not in a position to share more details.
Nissan South Korea's sales plunged 40% to 3,049 vehicles in 2019, data from the Korea Automobile Importers & Distributors Association showed. It has also felt the effects of a diplomatic row between Japan and South Korea that has led to consumer boycotts.
On Feb. 13, the Japanese carmaker posted its first quarterly loss since 2009 and slashed its full-year outlook amid declining sales and turnover among its top executive team. Its shares slumped nearly 10% the following day.
On Jan. 28, reports surfaced that Nissan was planning to cut at least 4,300 corporate jobs and close two manufacturing sites as part of a cost-saving plan to save ¥480 billion. The cuts will reportedly be implemented on top of Nissan's plan to slash 12,500 jobs worldwide.
In September 2019, sources told the Financial Times (London) that Nissan was considering exiting the South Korean market.
As of Feb. 13, US$1 was equivalent to ¥109.84.