Japanese automaker Nissan Motor Co. plans to cut over 20 thousand jobs worldwide amid a major crisis caused by the pandemic coronavirus infection COVID-19, reports news Agency Kyodo News.
a Sharp drop in demand for cars forced Nissan to cut production, as well as to consider measures of restructuring operations.
According to Kyodo, the loss of jobs is part of the medium-term plan of business restructuring, which Nissan will announce on may 28, simultaneously with the publication of the accounts for the financial year ended in March.
In late April, the automaker announced that probably recorded a net loss for the financial year for the first time in 11 years in connection with the negative impact of the pandemic coronavirus.
Nissan plans to cut annual costs by 300 billion yen ($2.8 billion) as part of the reorganization of the business, said the source Agency. In addition, according to the source, the automaker will record a one-time write-off in connection with the restructuring.
Among other measures, consider the Nissan - elimination of the Datsun brand, stopping one of the production lines in addition to the recent closure of operations in Indonesia, as well as reducing spending on advertising and R&D, said the source.
Nissan is in a difficult situation since the arrest of the former Chairman of the Board of Directors of the company Carlos Ghosn in November 2018. This was followed in the leadership of Nissan was provided with a number of permutations. In particular, the CEO of the company was appointed Makoto Uchida, who succeeded Hiroto Saikawa in October last year. Chief operating officer became Ashwani Gupta.
last week it became known about resignation of the head of the American division of Nissan, josé Luis Valls.
Nissan Shares fell 2.5% at the end of trading on Friday. Since the beginning of this year, its value fell by 41%.