Nissan Expects Annual Loss, Slashes 20,000 Jobs

Japan's third-largest automaker says the job cuts will help cope with what's expected to be the company's first annual loss in nine years. Nissan expects a net loss of nearly $3 billion when its fiscal year ends in March. The company already has shortened the work week at its U.S. factories, slowing production to adjust to falling demand.

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LINDA WERTHEIMER, host:

NPR's business news starts with job cuts from another Japanese carmaker.

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WERTHEIMER: It seemed only a matter of time before Nissan would follow its rivals in announcing bad news. Today, the head of Japan's number three carmaker said the company went into the red for the year and would slash 20,000 employees from its global work force. It's not clear how the cuts will affect Nissan's U.S. operations. The company has been running its factories in Tennessee and Mississippi for only four days a week instead of five to slow production to meet falling demand. The company also said it will slash pay for directors and managers.

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