Nissan to Lay Off 20,000 Workers Amid Rising Losses and Declining Sales

In short

•Nissan will eliminate 20,000 positions, twice as many as it had previously said

•The job reductions mentioned above represent 15% of Nissan's staff

•The automaker is forecasting a record net loss of 700-750 billion 

Nissan recently signaled that it forecasts a record net loss of 700-750 billion ($4.74–$5.08 billion) for the previous financial year, primarily caused by impairment losses.

Nissan, the Japanese auto manufacturer, intends to lay off about 20,000 jobs, twice as many as the number it earlier said it planned to cut down, reports indicated. This comes as the automobile company continues experiencing financial woes emanating from stagnant global sales as well as losses.

In November, Nissan had announced it would be laying off 9,000 staff after dismal US and Chinese sales led to a 94% slump in first-half profit. Now, however, the number of layoffs will jump to almost 20,000, or around 15% of Nissan's total staff, according to Japan's public broadcaster NHK.

The firm recently signaled that it predicts a record net loss of 700-750 billion ($4.74–$5.08 billion) for the previous financial year, primarily attributed to impairment costs.

Another report indicates that Nissan could also grant early retirement to some hundreds of workers in Japan who are engaged in administrative duties. If it does so, it would be the firm's first early retirement scheme in 18 years.

Meanwhile, Nissan has not commented on the report.

It should be noted that Nissan has been struggling with issues such as old car models and providing too many discounts to stimulate sales. These issues have compelled the company to reduce production and introduce new leadership to attempt to correct the situation.The company is set to formally release its full-year financial results on May 13.