New Delhi: Nissan Motor, once Japan’s fourth-largest carmaker, is set to lay off 20,000 workers as part of its strategy to restructure its business. The company had earlier planned to lay off 9,000 workers, but it is now set to lay off 20,000, as per NHK.
The company had announced plans to layoff workers in November, as it found it extremely difficult to compete against EVs and other rivals in the US and China, its two biggest markets.
The company hasn’t been able to capitalize on the growing popularity of EVs, even as its product lineup has become outdated.
The company, which produced 150 million vehicles in 2017, now faces a bleak future, as it had to abandon plans for a new factory in Japan and has also announced plans to shut another factory in Thailand.
Due to its weak profitability and ageing product portfolio, credit rating agencies have downgraded Nissan to junk.
The company has seen a 94% drop in net income, and it is due to report a $5.08 billion loss.
Nissan plans to launch about 10 new models to address the slide in sales in China, and how the company deals with these losses remains to be seen.
The company is set to announce its financial results on May 13.
