Why Nissan wants to fire 20,000 employees
What's the story
Nissan Motor Company has doubled its planned job cuts from 9,000 to around 20,000, as per NHK. The move comes as part of a strategy to restructure the company's struggling business. The Japanese automaker had first revealed plans for the layoffs last November owing to disappointing sales in key markets such as the US and China.
Impact
Job cuts now represent 15% of workforce
The revised job cuts now represent about 15% of Nissan's total workforce. The decision to increase layoffs comes amid a string of challenges faced by the company since November last year. These include an outdated product range and excessive dealership incentives that have resulted in reduced production capacity, and changes in executive leadership within the organization.
Finances
Nissan's financial forecast
In April, Nissan had estimated a net loss of up to ¥750 billion ($5.1 billion) for the last fiscal year, which would be the company's record annual deficit. The full-year results for the period ending on March 31 will be announced by Nissan on May 13. The financial forecast highlights the challenges Nissan faces as it continues its efforts to restructure its operations and improve its business.