Nissan has announced 20,000 job losses as the firm faces its first full-year loss since it merged with Renault in 1999.
The company today predicted that it will make a $2.58bn (£1.75bn) loss for the financial year ending on 31 March, and that it will need to cut its global workforce from 235,000 to 215,000 as part of a major cost-cutting exercise.
Perhaps more noticeably, Nissan will put what it calls “the mid-term business plan” on hold, cutting spending on new projects and cancelling some new car programmes. Capital expenditure will be cut by 15 per cent, from 3.84bn yen (£1.78bn) to 330bn yen (£1.53bn).
The board of directors will not take any bonuses for 2008, and all executive salaries will be cut by 10 per cent.
There’s also a new post in the executive boardroom: the chief recovery officer. Briton Colin Dodge will “lead the company's ongoing recovery activities”.
As yet, no factories will be closed, but an unfinished facility in Morocco, a joint-venture with Renault, has been put on hold.