Nissan Motor Co. plans to cut more than 10,000 jobs globally as part of efforts to turn around its business, company sources said Tuesday.

The number, which represents around 10 percent of its global workforce, is much bigger than an earlier estimate. In May the Japanese carmaker said it would cut 4,800 jobs.

Nissan's group net profit hit a nine-year low in the year through March, hit by weak sales of its cars in the U.S. market, and the Japanese automaker has projected it will nearly be halved in fiscal 2019.

Also, since the arrest in November of its former Chairman Carlos Ghosn over alleged financial misdeeds, Nissan has been struggling to restructure its management team and ties with Renault SA, its biggest shareholder.

The additional reduction in workforce, including through early retirement options, is expected to be announced by the Yokohama-headquartered automaker on Thursday, when it releases earnings figures for the April to June period of this year.

Some factories in South America and other regions where Nissan has low profitability are likely to be subject to the reduction plan, while it may try to streamline output in Japan.

As of March this year, Nissan and its group companies had about 139,000 employees, according to its financial report.

Nissan has acknowledged it was overstretching to meet numerical targets, such as by relying on incentives, in the U.S. market.

It has been reviewing the expansionist business strategy spearheaded by Ghosn, who built the three-way alliance also involving Mitsubishi Motors Corp. and led an auto group that was the world's second largest last year in terms of vehicle sales.

In fiscal 2018, Nissan saw its global vehicle sales fall 4.4 percent to 5.52 million units, including a 9.3 percent decline in the United States to 1.44 million units and a 14.9 percent drop in Europe to 643,000 units.


Related coverage:

Carlos Ghosn sues Nissan, M'bishi Motors, seeks 15 mil. euros in damages

Ex-Nissan boss Ghosn released on bail, but barred contact with wife

Nissan to cut 12,500 jobs as net profit tanks 94.5% in April-June