Nissan to cut 20,000 jobs, predicts $2.9 billion loss

— -- Nissan said it will reduce its workforce by 20,000 and slow factory production as it projected that it stands to lose $2.9 billion this fiscal year.

CEO Carlos Ghosn said the Japanese automaker is confronting three crises at once — the credit crunch, recession and a strengthening yen. Nissan revised its previous forecast for automotive demand around the world downward by 10%. In the U.S., the market has dropped 21%, it said.

"The global auto industry is in turmoil, and Nissan is not an exception," he said in a statement. It reported a net loss of $810 million in the third quarter ended Dec. 31. Ghosn's plan:

•Cut jobs. Nissan didn't specify which countries will be hit worst by the 20,000 job cuts, down from 235,000 today. In the U.S., about 1,200 workers have taken part in a "voluntary transition program" in which they quit their jobs at plants in Smyrna and Decherd, Tenn., says spokesman Fred Standish. Nissan is combining two design studios, reducing headcount by another 110.

•Slash output. Nissan's U.S. assembly plants in Canton, Miss., and Smyrna are operating only four days a week.

•Reduce new introductions. Nissan is reducing the number of model introductions worldwide to 48 through 2012, down from 60.

•Snip other costs. Travel expenses will be reduced 75%. Sports team sponsorships will be discontinued. Capital expenditures are being reduced 21% to preserve cash.

Ghosn has long been one of the world's most admired auto executives for engineering a turnaround at Nissan a decade ago. He also heads Nissan's French affiliate, Renault.

Analysts watched Ghosn's latest move with interest.

Nissan is gaining market share in the U.S. but has also suspended dividend payments to preserve cash, says Efraim Levy, an analyst for Standard & Poor's, in a note to investors.