Nissan Motor is thinking about cutting 20,000 jobs from its worldwide workforce, focusing on Europe and developing countries, Kyodo news reported on Friday, as the Japanese automaker continues to have a hard time to recover from declining car sales.
The possible cuts come as the automaker prepares to declare its updated mid-term strategy next week. Profits at the automaker have been struggling for the past three years, and the coronavirus pandemic has only piled on urgency and pressure to renew efforts to cut size and turnaround the company.
Nissan refused to comment on the Kyodo report.
The automaker stated in July last year it would cut 12,500 jobs, almost 10% of its of 140,000-strong workforce. If Nissan raises that to the higher figure, it would compete the 20,000 jobs it shed during the global financial crisis in 2009.
Even before the spread of the virus, automaker’s sales and profits had been declining and it was burning through cash, forcing it to curtail an aggressive expansion plan carried out by ousted leader Carlos Ghosn.
As a result, it will concentrate on strengthening cooperation with French automaker Renault SA and Japanese automaker Mitsubishi Motors, to make better use of the regional and technological strengths of all three automakers, and consolidate production capabilities.
France’s finance minister on Friday stated Renault’s future was at stake if it does not get help very soon, while Mitsubishi previously this week reported a 89% decline in annual profit in the year ended March 31.