20,000 job cut Downs At Nissan; Record Loss In 9 Years
The expected net loss of Nissan Motor Co. is 265 billion Yen i.e. $2.9 billion for the fiscal year across March. Nissan is facing a yearly loss for the first time in the past 9 years. Carlos Ghosn, Chief Executive Nissan said, “The global auto industry is in turmoil, and Nissan is no exceptional.”
In an effort to subside the loss impact, Nissan is expelling a large number of employees. By March 2010, Nissan will reduce the number of employees from 235,000 to 215,000. The board directors too will not enjoy their bonus for the year, ending in March.
Reduction in salaries has also been announced as:
- Board of Directors’ salaries: 10% reduction
- Corporate Officers’ salaries: 10% reduction
- Managers’ salaries: 5% reduction
The March and Z line of sports car’s compact financial report for the Oct-Dec quarter shows the net loss as 83.2 billion Yen. It is in contrast to the previous year’s same quarter profit earning which was 132.2 billion Yen.
Nissan began recording its quarterly financial statistics in 2003. Since then, it is the first quarterly loss that the company has recorded.
The other Japanese automotives are also recording big loses. Toyota is also amongst the automotive giants which are showing up with record loses in previous so many years.