Nissan to make restructuring cuts of $2.8bn – report
Japanese auto giant Nissan is preparing to make cuts of $2.8bn (£2.3bn) in fixed costs as part of its restructuring plan, as the firm prepares to make its first loss since the financial crisis.
Bloomberg reported that the company will announce the plan on 28 May after three years of falling profits at the Japanese firm.
Cuts will be made in departments such as marketing and research, although the firm’s board has not yet reviewed the plans.
Other measures include shutting down Nissan’s low-cost Datsun brand, which has been performing poorly in Asia and Russia, and closing one of its production lines.
A spokesperson for the company decline to comment on the report.
The firm’s financial performance had been suffering before the coronavirus crisis kicked in, due to the backfiring of an aggressive growth strategy by disgraced chief executive Carlos Ghosn.
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Nissan’s problems have been exacerbated by the crisis, which has seen car sales crash around the world.
At the end of April, Nissan warned that the pandemic could send it to a loss of 45bn yen (£335m) over the year.
The loss would be the company’s worst since the financial crisis, when it recorded a 137bn yen loss.
It had previously been reported that Nissan was considering a plan that would see it reduce its annual vehicle sales target to 1m.
The firm is also set to provide an update on its alliance with French giant Renault at the end of the month when it releases its financial results.
Relations between the two companies have been strained since the arrest of Ghosn last year, but both have affirmed their commitment to the partnership lately.