Nissan is to cut 20,000 jobs worldwide, 8.5% of its workforce, over the next year because of a sharp fall in sales.
The Japanese carmaker made the announcement as it said it expected to make a loss of 265bn yen ($2.9bn; £2bn) for its current financial year.
Nissan chief executive Carlos Ghosn said the the firm's "worst assumptions on the state of the global economy have been met or exceeded".
"The global auto industry is in turmoil. Nissan is no exception."
Nissan said the 20,000 job cuts would be made between March 2009 and March 2010.
The reduction will see the size of its global workforce fall to 215,000 from 235,000, although Nissan has yet to say which plants will be affected, and by how much.
The automotive industry is a large consumer of steel, particularly strip and sheet products. Continuing cutbacks in the automotive industry does not bear well for an early improvement in the steel industry.