Nissan has announced it will reduce its headcount from 235,000 to 215,000.

Nissan has announced it is to cut 20,000 jobs in 2009, following its third quarter results which revealed a net loss of ¥83.2 billion. It has also forecast a 2008 total net loss of ¥265bn (approximately £2bn).

Nissan sold 731,000 vehicles between October and December 2008, down almost 19% compared with the same period the previous year, while its April to December operating profit fell 84%. All losses have been attributed to the downturn in economy and the decline in consumer confidence.

In addition to the job cuts, the car manufacturer is carrying out other recovery actions, which include the elimination of bonus payments to board directors, instigation of a tightly controlled inventory, and a reduction in global production of 20%.

Carlos Ghosn, Nissan President and CEO, said: “In every planning scenario we built, our worst assumptions on the state of the global economy have been met or exceeded, with the continuing grip on credit and declining consumer confidence being the most damaging factors. Looking forward, our priority remains on protecting our free cash flow and taking swift, adequate and impactful actions to improve our business performance.”

Nissan hopes to generate ¥130bn of cash in 2009 through the implementation of these recovery actions.

“The additional actions we are announcing today [9 February] will reinforce our ability to manage through this global crisis, but they also position Nissan for rapid, strong growth when conditions improve,” continued Ghosn.