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2007-04-04 07:40
Nissan is expected to make an announcement later this month aimed at restoring its business to profitability though local operations could be hard hit.

A profit warning two months ago has prompted Nissan CEO Carlos Ghosn to revise the manufacturer's business operation. The full revised plan is expected to be announced with the company's full-year results on April 26.

The plan is expected to map five steps, including job cuts in South Africa. A change in the management structure and restructuring of some manufacturing facilities are also on the cards.

Regarding this plans impact on Nissan's local operations, the company confirmed that job cuts are planned and that the process commenced in February with all the affected employees and unions being consulted.

"It is anticipated that 410 employees will be affected. As we have a number of contract labour, we will start with this category first before permanent employees are affected. The process and dates are subject to the negotiations with the representative unions and other parties.

"It is not foreseen that manufacturing and the introduction of new models will be affected. Our production plan is linked to market forecast and adjustments will be affected accordingly."

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