TOKYO: Nissan Motor Co. is considering cutting around 20,000 jobs around the world, as it plans to accelerate its structural reform to improve profitability, in order to weather tough business conditions amid the COVID-19 pandemic, informed sources said Friday.
The possible job reduction is compared with the cut of 21,000 jobs in the 1999 Nissan Revival Plan, which was mapped out under former Chairman Carlos Ghosn.
The Japanese automaker may also revise its production system at home, according to the sources.
On Thursday, Nissan is slated to release a medium-term management plan, as well as its results in fiscal 2019, which ended in March.
The company is expected to report a group net loss for the first time in 11 years. It has projected a loss of nearly 100 billion yen, but its annual loss may turn out to be larger, given possible restructuring costs.
Nissan’s earnings have been deteriorating rapidly, due to the apparent failure of the former chairman’s expansionist policy.
In July last year, the company announced a plan to slash 12,500 jobs, or about 10 percent of its global workforce.
However, the company now finds it inevitable to cut more jobs, considering a continued fall in vehicle sales and the impact of the pandemic, the sources said.