Nissan Motor Corp. is implementing significant production cuts at its US plants and extending buyouts to factory workers as part of its urgent strategy to regain profitability, The Associated Press reports.
This decision follows the automaker’s announcement two months ago to cut 9,000 jobs globally, including in China, after reporting a quarterly loss driven by declining sales and increasing inventory levels.
At the Smyrna, Tennessee plant, which produces the Murano, Pathfinder, Rogue SUVs, and the Infiniti QX60, the company will maintain two shifts on one production line while consolidating the other line to a single shift. In Canton, Mississippi, where the Altima sedan and Frontier pickup are manufactured, Nissan will reduce production speed on one line and consolidate another.
Changes at the Decherd, Tennessee plant, which supplies engines, will be more gradual, with some shifts maintained and others reduced by one shift, as per company announcements.
When Nissan unveiled its recovery plan in November, it did not specify where the job reductions would occur. The planned workforce reduction of 9,000 employees represents about 6% of Nissan’s more than 133,000 global workforce. Additionally, the company aims to decrease its global production capacity by 20%.
Headquartered in Yokohama, Japan, Nissan stated that the latest buyout offers contribute to its broader job reduction strategy, aimed at enhancing operational efficiency and flexibility. In a separate development, Nissan and its Japanese rival Honda Motor Co. are collaborating to establish a joint holding company to integrate their businesses by 2026. This partnership, announced in March, also includes joint efforts in electric vehicle development, with an expanded agreement expected by June.
Nissan will release its financial results for the October-December period on February 13. Following news of the production cuts and workforce adjustments in the US, Nissan’s stock price rose by 2% in Tokyo trading.
