Nissan to cut 20,000 jobs
As the global economic crisis spreads and deepens, foreign makers are starting to feel the pinch and pull back. Nissan Motors announced this week it will cut 20,000 jobs by the end of March. Nissan CEO Carlos Ghosn said no factories will be shut down, but the job cuts, which amount to about 20% of Nissan’s total workforce, are necessary in the face of a projected $2 billion loss for the coming year. In addition to the 20,000 jobs cuts, Nissan is asking for 1,200 voluntary early retirements.
Nissan said that most of the cuts will occur in Japan. Shares of Nissan stock have fallen over 70% in the past year alone, hurt by sluggish sales but also by the rise in value of the yen, which has made Nissan’s pricing less competitive in export markets, especially the U.S. Nissan also holds a 15% stake in Renault, which is experiencing serious debt problems that are pushing it to the brink of solvency.
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