Nissan plans to axe over 20,000 workers worldwide

The coronavirus outbreak is forcing Nissan to cut production, and it is also considering restructuring measures in Japan. It warned last month that it expects to post a loss for the latest fiscal year through March as the pandemic shuttered dealershi
The coronavirus outbreak is forcing Nissan to cut production, and it is also considering restructuring measures in Japan. It warned last month that it expects to post a loss for the latest fiscal year through March as the pandemic shuttered dealerships in major markets and hurt demand for new cars.PHOTO: REUTERS

TOKYO • Nissan Motor is planning to cut more than 20,000 jobs across the world, as it grapples with closed factories and showrooms amid the coronavirus pandemic, Kyodo News reported.

The outbreak is forcing the Japanese carmaker to cut back on production, and it is also considering restructuring measures in the country, the news agency reported.

The job reductions are part of a mid-term reorganisation plan that Nissan is due to unveil next Thursday, Kyodo said.

The reduction is much larger than the 12,500 staff cuts Nissan announced in the middle of last year. Nissan has been in turmoil since the November 2018 arrest of former chairman Carlos Ghosn, with an ageing car line-up and management paralysis denting its outlook.

The automaker warned last month that 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 (S$4 billion) in annual fixed costs and book restructuring charges as the pandemic further depresses its sales, a person with knowledge of the measures said last week.

The automaker 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.

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A version of this article appeared in the print edition of The Straits Times on May 23, 2020, with the headline 'Nissan plans to axe over 20,000 workers worldwide'. Print Edition | Subscribe