Nissan to cut 20,000 jobs worldwide

Nissan has announced it will cut 20,000 jobs worldwide - 8.5% of its workforce - in a bid to cut costs after figures showed a net loss for the third quarter.

The Japanese car maker has also said it now expects a net loss for the financial year when it comes to an end in March.

The statement comes after Nissan announced a net loss of 83.2 billion yen (£622 million) for the October-December quarter, compared with 132.2 billion yen profit for the previous year.

It is the first time in nine years that the car maker, which is Japan's third biggest, has tumbled into an annual loss, and it now expects a £2 billion net loss for the fiscal year.

Chief executive Carlos Ghosn said: "The global auto industry is in turmoil and Nissan is no exception."

Sales in its vital North American market have been hit by the credit crunch and the strong rate of exchange for the yen has reduced profits further.

Mr Ghosn said that one step in response to the recession is to make 20,000 redundancies by March 2010 to 215,000 from 235,000.

Directors on the board will not get a bonus and they, together with corporate officers and managers, will have their salaries cut.

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