Nissan forced to cut global workforce after first full-year loss
9 February 2009

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.

Find an Autocar car review

Driven this week

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week