Tokyo, May 13 (EFE).- Japanese vehicle manufacturer Nissan Motor confirmed on Tuesday that it would lay off 20,000 workers worldwide until 2027, as part of its restructuring plan, which is more than double the number announced last year.
The decision comes after Nissan reported a net loss of 670,9 billion yen (about $4.5 billion) in the last financial year ending March.
The third largest Japanese automaker by sales volume published Tuesday its financial results for 2024, which confirm a situation that its board of directors defined as very complex and stressed the need for urgent measures.
Its net losses were in contrast to the net profit of 426.6 billion yen the previous year, and can be attributed to the sharp depreciation of its assets and the increase in its operating costs.
The company’s operating profit plummeted 87.7 percent year-on-year to 69.8 billion yen, while its turnover fell slightly by 0.4 percent to 12.63 trillion yen.
The figures do not include the impact of US vehicle import tariffs, which came into effect in April and are expected to have a negative effect to the tune of 450 billion yen in Nissan s for the current year.
Faced with its forecasts of incurring losses this year, the company in November announced 9,000 layoffs worldwide until the financial year 2026. This figure has now more than doubled to 20,000 by the fiscal year 2027.
Nissan expects to return to profitability with these layoffs, coupled with a reduction in the number of its vehicle production plants worldwide from the current 17 to 10, which will cut its global production volume by 30 percent excluding China. EFE
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