On May 22, local time, according to Kyodo News, Nissan plans to lay off more than 20,000 people worldwide. This will be the largest layoff since the Nissan revival plan in 1999. The layoffs will be mainly concentrated in Europe and some countries with poor market performance.
Kyodo News reported that due to the impact of the new coronary pneumonia epidemic, the demand for the automobile market has declined, and the management of Nissan has become more and more difficult, so it is considering restructuring its Japan Production base to maintain operations by reducing production capacity.
Kyodo News reported on May 14 that Nissan is planning to reduce global production capacity by 20% by 2022, and the current global production capacity is about 7 million vehicles. Nissan will write this into the planned mid-term business plan announced on May 28, indicating that it will transform the expansion route proposed by former chairman Carlos Ghosn.
Since Ghosn was arrested in November 2018 on suspicion of financial violations, Nissan Motor ’s fiscal year 2018 hit a ten-year low operating profit. Nissan ’s third fiscal quarter (October-December) financial report for fiscal year 2019 showed a net loss of 26.09 billion yen in the quarter, compared with a net profit of 70.4 billion yen in the same period last year, the first time since March 2009 Quarterly loss.
On April 28 this year, Nissan Motor announced that it will consolidate its financial results for fiscal year 2019. It is expected that the net loss may fall to about 85 billion to 95 billion yen.
According to the Financial Times, some analysts expect that Nissan will not have real cash flow until March 2022, and its balance sheet will gradually expand.