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COVID-19 epidemic continues to spread, a number of car companies into operational difficulties, factories can not operate normally, new car sales are also greatly reduced by the reality of a serious decline in demand. To this end, a number of car companies have announced layoffs in order to tide over the difficulties.

Nissan cuts more than 20,000 jobs worldwide

Nissan is considering cutting more than 20,000 jobs worldwide, focusing on deteriorating Europe and emerging markets, according to Japan's Kyodo news agency. This will be a large-scale layoff since Nissan fell into operational crisis in 1999, when Carlos Ghosn, then chief operating officer and former chairman, announced the business reconstruction plan "Nissan recovery Plan".

Nissan hopes to revive itself by narrowing its production system. In July last year, Nissan announced plans to cut a total of 12500 jobs in 14 regions around the world by 2020. hit by the COVID-19 epidemic, Nissan, in addition to closing its plants in Barcelona, Spain, has also begun to reduce production in emerging market countries such as Indonesia, while cutting US factory capacity by 10 per cent, and the total number of layoffs is expected to increase to more than 20, 000.

Nissan sold 5.77 million vehicles worldwide in 2017, the highest since the company was founded, and has fallen since then, with global sales of 4.92 million vehicles in 2019. Nissan has announced that it is likely to turn to a net loss of about 85 billion-95 billion yen (5.6 billion-6.3 billion yuan) in fiscal year 2019.

Renault cuts 5000 jobs

In 2020, France's Renault announced its withdrawal from the fuel passenger car business in the Chinese market, leading to the dissolution and delisting of Dongfeng Renault. Because of its operational difficulties, Renault is considering more cost-saving options.

Foreign media reported that Renault plans to cut 5000 jobs by 2024 to save 2 billion euros in costs. Renault will not resort to direct layoffs and will give priority to "employees who plan to retire," the report said. The company is still waiting for the finalization of 5 billion euros in government loans, and management and unions are still negotiating over employees and factories in France.

French Finance Minister Bruno Lemerre warned that Renault was in "serious financial difficulties" and "may disappear", according to CNN. At present, the government is still discussing the terms of a loan agreement of 5 billion euros with Renault.

Before the outbreak, Renault was already in its worst financial performance in a decade, with net profit down 99% and share prices down 69% in 2019. As a result of the epidemic, Renault's global sales fell by nearly 70% in March compared with the same period last year, and its 12 factories in France also suspended production because of the epidemic and did not resume until this month.

McLaren cuts 1200 jobs

McLaren, a British supercar maker, said it plans to cut 1200 jobs, involving automotive, racing and technical staff, in response to the COVID-19 pandemic, foreign media reported. That means layoffs account for almost 1/3 of McLaren's more than 4000 employees.

McLaren said in a statement that it had launched "a proposed restructuring plan as part of a broader business plan to ensure its long-term success in the future". McLaren said the company had also been severely affected by the outbreak, as revenue was hit by the cancellation of racing events, the suspension of manufacturing activities, insufficient sales of new cars and reduced demand for technical solutions.

Paul Paul Walsh, executive chairman of McLaren, said: "We deeply regret the impact this restructuring will have on everyone, especially those whose jobs may be affected. Layoffs are something we have been trying to avoid and we have taken significant cost-saving measures in all areas of our business. But now we have no choice but to lay off staff. "

In addition, automakers including FCA, Jaguar Land Rover, Mazda, Mitsubishi Motors and Toyota have also applied for loans from the local government to replenish cash flow to cope with the impact of COVID-19 's epidemic.

In the epidemic, due to a serious decline in demand, factories have to shut down for a long time because of the epidemic, and more automakers may face severe challenges.

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