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Nissan could cut down more than 20,000 jobs worldwide

Gulf News 2020-05-22 12:42:08

Tokyo: Nissan Motor Co. is planning to cut more than 20,000 jobs across the world, as the carmaker grapples with factories and showrooms that have been shut down due to the coronavirus pandemic.

The outbreak is forcing Nissan to cut back on production, and restructuring measures in Japan are also being considered. The job reductions are part of a mid-term reorganization plan that Nissan is due to unveil on May 28.

The reduction is much larger than the 12,500 staff cuts Nissan announced in the middle of 2019. Nissan has been in turmoil since the November 2018 arrest of former Chairman Carlos Ghosn, with an aging car lineup and management paralysis denting its outlook.

The automaker warned last month it expects to post a loss for the latest fiscal year through March, as the pandemic shuttered dealerships in major markets and the economic fallout hurt consumer demand for new cars.

Nissan plans to cut about 300 billion yen ($2.8 billion) in annual fixed costs and book restructuring charges as the pandemic further depresses the carmaker's sales, a person with knowledge of the measures said last week.

The Yokohama-based company will phase out the Datsun brand, shut down one production line in addition to the recently closed operation in Indonesia and reach the reduced spending target this year by cutting marketing, research and other costs.