Nissan to cut work force by 20,000, expects $2.9 billion net loss

Nissan has already cut its temporary plant workers in Japan by 2,000, slashed its British work force by 1,200 and has offered early retirement to 1,200 in the U.S., a number that will most likely increase. The Japanese automaker now announced it will cut 20,000 jobs of its global work force to cope with its first annual loss in nine years.

Nissan Motor Co. said that it now expects a 265 billion yen ($2.9 billion) net loss for the fiscal year through March. The last time Nissan faced an annual loss was the fiscal year ending March 2000. CEO Carlos Ghosn said that while back then the troubles were limited to Nissan, this time no automaker has been spared as the global economic slow down and the U.S. credit crunch leading to a huge drop in demand for new cars.

Ghosn said that of the 20,000 workers being cut, 12,000 will be in Japan. He did not give any other specifics. The move will cut Nissan’s work force from 235,000 to 215,000.

Source: Detroit Free Press