Nissan to shut down global HQ in Japan to combat coronavirus spread

The plans announced today will begin soon with the closure running for 16 days. Operations will be shut down between April 25 and May 10. The closures will affect a total of 15,000 employees, the company said in a statement.

Nissan said that it would reduce operations to a “minimum level” at its head offices in Yokohama along with non-production facilities in nearby Atsugi, where its main R&D centre is located.

With 15,000 employees affected, this is yet another blow to the economy.

In the UK, recent studies have predicted a quarter of Brits will loose their jobs due to the pandemic.

The hospitality industry is set to be the worst affected industry by far with studies estimating over 70 per cent of job cuts.

Professor Matteo Richiardi, an expert on modelling labour markets who led the research, warned the risk of jobs being permanently lost depends on the duration of the lockdown.

He said: “If this is short, say a few months, the links between employers and employees of affected industries might not be severed, and individual careers might not suffer too much. Under a longer lockdown, losses of human capital and scarring effects will occur.”

Meanwhile, a new government scheme to support businesses and help safeguard jobs has officially opened for applications.

Employers will now be able to claim grants for their workers’ wages online.

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The launch comes following the Government’s warning of the economic cost for many companies should there be any delay in its implementation.

In a statement, Chancellor Rishi Sunak said: “Our unprecedented job retention scheme will protect millions of jobs across the country and is now up and running.

“It’s vital that our economy gets up and running again as soon as it’s safe – and this scheme will allow that to happen.”

Under the furlough scheme, employers claim cash grants worth up to 80 percent of their staff’s wages.

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The wages claimed are capped at £2,500 per month per worker.

Approximately 5,000 HMRC staff will operate the scheme, assisting thousands of UK firms.

The money should reach bank accounts within six working days, a statement from the Treasury said.

Phone lines and web-chat services will be available to help answer applicants’ questions, with the scheme launching 10 days ahead of schedule, it added.

Adam Marshall, director general at the British Chambers of Commerce (BCC), said: “Our research indicates that two-thirds of firms have furloughed some portion of their workforce.

“With April’s payday approaching, it is essential that the application process is smooth and that payments are made as soon as possible.

“Any delay would exacerbate the cash crisis many companies are facing and could threaten jobs and businesses.”

The new scheme comes after a worrying Treasury report revealed six out of ten businesses would be out of cash within three months.

The Sunday Times has reported that a briefing document seen by ministers has given dire predictions about the UK’s future if restrictions aren’t eased soon.

One source told the newspaper that failure to act would mean “there won’t be anything left of the economy”.

One in three fashion businesses are not expected to survive a month.

Meanwhile, the car industry faces cash flow issues and airlines could run out of money within a matter of weeks.

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