Nissan may cut 20,000 jobs as part of its restructuring

The woes continue for Nissan. Japan’s third-largest automaker,
which has said it is planning to restructure its operations and

cut costs
, may have to further reduce its global workforce as
it seeks ways to restore its business to profitability.

Last July, it had said that it was set to
cut 12,500 jobs
at 14 production bases across the world by
March 2023 as part of a restructuring. Now, as Kyodo News reports,
the number of cuts may increase to over 20,000, which would
represent a 15% reduction of its 139,000 global workforce.

Sources told the publication that slumping sales due to the
Covid-19 pandemic
is necessitating a revision of the restructuring plan, and the
company is considering cutting jobs in Europe and some emerging
economies as it seeks to streamline production operations and
restore its battered business.

The deepening business slump, exacerbated by the pandemic, has
pushed Nissan to work on additional reform measures. It has already
plant closures
in Spain as well as Indonesia and some other
emerging markets, and the
phasing out of its Datsun sub-brand

Downsizing plans, which were
reported last month
, are expected to be revealed in a new
medium-term management plan that will be announced. This will
likely include a cut of global output capacity by 20% by fiscal

The company is set to release its earnings results for the year
ended March, and has already said it expects to report a group net
loss of 85 billion yen (RM3.4 billion) to 95 billion yen (RM3.86
billion) in fiscal 2019. Global sales amounted to 4.79 million
vehicles, marking a progressive slide from the record high of 5.79
million units it achieved in fiscal 2017.

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Nissan may cut 20,000 jobs as part of its restructuring

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Source: FS – Cars 1
Nissan may cut 20,000 jobs as part of its