Nissan Offers Buyouts, Cuts Shifts at US Plants Amid Cost-Cutting Drive
Tokyo, Japan - Nissan Motor is providing buyout packages and reducing shifts at three US factories as part of a global cost-cutting initiative aimed at slashing $2.6 billion, a company spokesperson confirmed on Thursday.
The separation packages will be available to workers at the vehicle assembly plants in Smyrna, Tennessee, and Canton, Mississippi, as well as an engine plant in Decherd, Tennessee.
Nissan, Japan's third-largest automaker by volume, will eliminate one of two shifts for its Rogue SUV production line in Smyrna starting in April, and for the Altima sedan in Canton from September.
In addition to Smyrna, Nissan produces Rogues at its Kyushu factory in southwest Japan, its primary production facility in its home market. Reuters had previously reported that Nissan planned to cut output at this plant by a third in August 2024 due to declining US demand for its aging models, including the Rogue.
The Nissan spokesperson declined to disclose the expected number of US workers who may accept the buyout offer. However, Nikkei reported earlier on Thursday that the move could potentially lead to the reduction of around 1,500 jobs.
Nissan emphasized that it does not plan to conduct involuntary layoffs, noting that it employed over 11,700 workers at the three US plants as of the end of 2024.
In November, the company announced a plan to eliminate 9,000 jobs worldwide and reduce the maximum capacity of its 25 vehicle production lines, which has been negatively impacted by sales declines in China and North America.
Less than two months after unveiling that plan, Nissan and Honda Motor announced discussions on a potential merger that could create the world's third-largest auto group with an annual output of 7.4 million vehicles.