Nissan Layoffs: Carmaker to cut 20,000 jobs globally amid warning of $5 billion record loss - Report

Nissan is set to cut around 11,000 more jobs across the globe, bringing its total number of layoffs to a massive 20,000, Japan's public broadcaster NHK reported on Monday.

Nissan had previously planned on cutting 9,000 jobs on weak business. With the latest reported development, the Japanese carmaker is likely to see a 15 per cent reduction in its total workforce around the globe, as per Reuters.

The company had in November said it would cut 9,000 positions after weak sales in the US and China in the first half of the financial year. That time, the company had seen a 94 per cent drop in its net income, as per Bloomberg.

However, Nissan has not officially commented on the latest report. This story will be updated if the company releases a statement.

Nissan, which had more than 1,33,000 staff as of March last year, announced plans in last November to cut 9,000 jobs and reduce global capacity by 20 per cent.

Nissan likely to see record loss

Nissan is set to announce on Tuesday results for the business year that ended in March. Since November, Nissan has reduced its growth outlook as it reeled under pressures of aggressive competition in the US and China.

The company warned its shareholders last month it would likely book a record 700 billion yen to 750 billion yen ($4.74 billion-$5.08 billion) net loss in that year due to impairment charges.

It has also said it would close a plant in Thailand by June and shut two more plants that it has not identified.

On Friday, it said it had decided to give up a plan to build a $1.1 billion factory, for which it was set to receive government subsidies, for EV batteries on Japan's southwestern island of Kyushu.

Its weak performance forced it to cut its profit outlook four times for the financial year that just ended.

Why is Nissan suffering?

The company – one of the top 10 automakers by unit sales – is heavily indebted and engaged in an expensive business restructuring plan.

Nissan, whose mooted merger with Honda collapsed earlier this year,is finding it difficult to compete against home-grown electric vehicle brands in China. Meanwhile, increased US tariffs have also come as a blow to its profits.

Ratings agencies have downgraded the firm to junk, with Moody's citing its "weak profitability" and "ageing model portfolio".