Nissan to cut 12,500 jobs after dramatic decline in profits

July 25 (UPI) -- Nissan Motor Co. said Thursday it plans to cut 12,500 jobs worldwide, after a dramatic reduction in profits over the past year.

The company plans to slash 6,400 jobs by the end of 2019 and another 6,100 by the end of 2022.

The cuts come after Nissan reported a 94.5 percent net income reduction in the first quarter; profits dropped to $59 million from $10.6 billion during the same time period in 2018.

Nissan said it also plans to reduce its product lineup and global production capacity, each by 10 percent, by the end of fiscal year 2022.

Christian Stadler, a professor of strategic management at Warwick Business School, blamed the arrest of former Nissan Chairman Carlos Ghosn for the automaker's problems, among other factors.

"The economic slowdown, which hit key markets such as the U.S. and China, the uncertainty surrounding Brexit, and the race to embrace new technology as the crackdown on diesel continues, all contributed to Nissan's fall in sales and will continue to do so," he told NBC News.