Nissan Considering More Than 20,000 Job Cuts, Kyodo Says
(Bloomberg) -- Nissan Motor Co. is planning to cut more than 20,000 jobs across the world, as the Japanese carmaker grapples with factories and showrooms that have been shut down due to the coronavirus pandemic, Kyodo News reported.
The outbreak is forcing Nissan to cut back on production, and restructuring measures in Japan are also being considered, the news agency reported. The job reductions are part of a mid-term reorganization plan that Nissan is due to unveil on May 28, Kyodo said.
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.
A representative for Nissan declined to comment on the report.
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, the person said.
©2020 Bloomberg L.P.