Nissan posts 83.2bn yen Q3 loss; to cut 20,000 jobs

Hit by declining sales and the surging yen, Japanese auto-maker Nissan reported a net loss of 83.2 billion yen (USD 0.81 billion) for the third quarter ended December 31, 2008, compelling the firm to slash 20,000 jobs or about 8.5 per cent of its  workforce.

Further, the worsening state of the global economy and deterioration in global auto markets have led the company to forecast its first full year loss of 265 billion yen in nearly a decade for FY08 and projects net revenue of 8.3 trillion yen in the year.

The company had a net income of 132.2 billion yen for the December quarter in the FY'08, Nissan said in a statement.

"The loss is driven by the severe downturn in the global economy in the second half of calendar year 2008 and, in particular, the negative impact of the strong yen, the sharp decline in consumer confidence in all major markets and product mix deterioration," it added.

During the quarter, net revenue stood at 1.81 trillion yen, down 34.4 per cent.

Nissan has also announced recovery actions designed to enhance the company's performance during the current global economic and financial crisis.

"Global headcount will be reduced by 20,000 through FY 2009, reducing Nissan's headcount from 235,000 to 215,000", the car-maker said in the statement.