Nissan Motor Co has said job cuts it announced as part of a broader restructuring at the company could cost an additional ¥60 billion (US$418 million) this fiscal year.
The estimate on expense that will be incurred to eliminate jobs was shared with analysts by Chief Financial Officer Jeremie Papin earlier this month, a transcript of the call published Friday showed. The additional costs will be reflected in the current fiscal year that began April 1, according to the filing.
The ailing carmaker had vowed to cut 20,000 jobs and shutter seven of its 17 factories after reporting a net loss of $4.5 billion during the financial year that ended in March. While the job losses and plant closures will include domestic operations, it has not been decided yet where they will be made, the filing cited Papin as saying.
Chief Executive Officer Ivan Espinosa, who took the helm in April, and his executive team have been tasked with rescuing Nissan from its worst crisis in decades. Weak sales in the US and China, an outdated product lineup and a revolving door of leadership have left it burdened with falling profit and a pile of debt.
Espinosa's plan expanded upon that of his successor, Makoto Uchida, who was ousted this year following the collapse of an ambitious plan to combine forces with Honda Motor Co.
Nissan is eager to build new partnerships, but it does not need help to get back on its feet, Espinosa said during an interview with Bloomberg TV.
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