France warns Renault could disappear; Nissan plans job cuts

SCALING BACK

Kyodo, meanwhile, said Nissan might axe 20,000 jobs from its global workforce, mainly in Europe and developing countries.

Two people with knowledge of the matter told Reuters the number of cuts had not been finalised.

Nissan declined to comment.

The Japanese automaker said in July last year it would cut 12,500 employees, nearly 10% of its of 140,000-strong workforce. If it raises that figure to 20,000, it would broadly match the number of jobs it shed during the 2009 global financial crisis.

Sources familiar with the matter told Reuters earlier this month that Nissan's management had become convinced it needed to be much smaller and would likely cut 1 million cars from its annual sales target, while seeing a bigger role for the United States and China in car sales.

Sources have also said it plans to scale back its European business to focus on sport-utility and commercial vehicles, including possibly closing a plant in Spain, which employs around 3,000 people.

Hit by over-capacity, stiff competition and flagging demand, Europe's car industry has seen a steady stream of job losses, with Germany's Volkswagen announcing in December up to 9,500 cuts at its Audi brand.

So far, most of the layoffs during the coronavirus crisis have been temporary, however, with companies taking advantage of government-backed furlough schemes.

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