Nissan plans to cut over 20 thousand jobs

US, WASHINGTON (ORDO NEWS) — Nissan Motor Co., one of the largest automakers in the world, plans to cut more than 20 thousand jobs, or about 15% of its global staff in different countries, Kyodo News reported on Friday.

Layoffs are planned as part of the restructuring of the company due to a fall in sales caused by the pandemic.

Japan’s third largest carmaker is considering reducing labor in Europe and some developing countries.

Nissan will suspend operations in Japan in May and June due to COVID-19.

Capitalization of Nissan has fallen by 44.1% since the beginning of the year. Coronavirus pandemic forces Nissan Motor Co., Renault SA and Mitsubishi Motors Corp. to conduct a major reorganization before March 2023, during which Nissan could reduce production capacity by 20%, according to the Nikkei Asian Review.

Alliance partners intend to revise the volume of production in order to more profitable use of capacities. Nissan will close the factory in Barcelona and transfer production to Renault plants in France and other countries.

Partners are exploring the possibility of expanding co-production of cars at other plants in Europe, South America and Southeast Asia.

Nissan produces nearly 7 million cars a year. At the Nissan factories in Spain in fiscal 2019, 55 thousand cars were produced (10% of the company’s production in Europe).

Nissan will direct major investments in manufacturing in Japan, North America and China, these countries account for 70% of the company’s car sales.

Nissan is considering a reduction in management salaries, including those of CEO Makoto Uchida, as a punishment for unsatisfactory performance.

The company warned that it could incur a loss for the past financial year, this will happen for the first time since 2009. Annual performance and a new medium-term work plan will be released on May 28.

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