Nissan is planning to cut 12,500 jobs across the world in a bid to cut costs.
The cuts will equate to about 9% of Nissan's workforce but unions and business groups are hopeful that the company will not cut any more roles at its Sunderland plant.
Nissan employs around 7,000 people in the North East and its presence in the region supports many more jobs working in the supply chain.
In a statement Nissan said: "Nissan is implementing strategic reforms in order to build an operational base that will ensure consistent and sustainable profitability over the medium term.
"The company is moving quickly to optimize cost structures and manufacturing operations, while also enhancing brand value, steadily refreshing its lineup and achieving consistent growth globally, including in the U.S.
"To improve its overall utilization rate, Nissan will reduce its global production capacity by 10% by the end of fiscal year 2022. In line with production optimizations, the company will reduce headcount by roughly 12,500. Furthermore, the company will reduce the size of its product lineup by at least 10% by the end of fiscal year 2022 in order to improve product competitiveness by focusing investment on global core models and strategic regional models.
"While some of these initiatives are already underway, the company expects that substantial improvements in its performance will take time."
A spokesman from Nissan's Sunderland plant was unable to comment further on the announcement. However, it is expected that Nissan Europe is preparing a follow up statement.
Nissan has previously said it planned to cut 5,000 jobs around the world but its latest statement to investors sees those numbers more than double.
A spokesman for trade union Unite said: “We don’t believe that today’s global announcement by Nissan will affect the Sunderland plant over and above the headcount reductions announced last year.
"The Sunderland plant is one of the most efficient car plants in the world and we are continuing dialogue with the company about the introduction of new models into the Sunderland Plant.”
Rumours about the increased cuts were reported yesterday, when sources told Japanese media about the plans.
Nissan confirmed the news in a first quarter trading update, in which it reported a 12.7% fall in revnues. Turnover came in at 2,372.4bn Yen (£20.15bn), down from 2,716.6bn Yen (£17.5bn) during the same period in 2018.
Operating profit plummeted by 98.5% during the period,from 109.1bn Yen (£810m) to just 1.6bn Yen (£12m).
Nissan's Sunderland plant was dealt a blow earlier in the year when the company revealed the factory would no longer produce its infiniti model. Instead the car will be made in Japan in efforts to centralise its production.
