Nissan considers 20,000 job cuts worldwide
May 22, 2020
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Nissan Motor Co is considering cutting 20,000 jobs from its global workforce, focusing on Europe and developing countries, Kyodo news reported on Friday, as the Japanese automaker struggles to recover from plunging car sales.
The possible cuts come as Nissan prepares to announce its updated mid-term strategy next week. Profits at the automaker have been floundering for the past three years, and the coronavirus pandemic has only piled on urgency and pressure to renew efforts to down size and turnaround the company.
Nissan declined to comment on the Kyodo report to Reuters.
The automaker said in July last year it would cut 12,500 employees, nearly 10 per cent of its of 140,000-strong workforce. If Nissan raises that to the higher figure, it would rival the 20,000 jobs it shed during the global financial crisis in 2009.
Even before the spread of the coronavirus, Nissan’s sales and profits had been slumping and it was burning through cash, forcing it to curtail an aggressive expansion plan pursued by ousted leader Carlos Ghosn.
As a result, it will focus on strengthening cooperation with France’s Renault SA and Mitsubishi Motors Corp, to make better use of the regional and technological strengths of all three car makers, and consolidate production capabilities.