Nissan Offers Buyouts to US Workers, Cuts Shifts
Tokyo, Japan - Nissan Motor is providing separation packages to employees and reducing shifts at three US factories as part of a global cost-cutting initiative, a company spokesperson confirmed on Thursday.
The buyout packages will be available to workers at Nissan's vehicle assembly plants in Smyrna, Tennessee, and Canton, Mississippi, as well as an engine plant in Decherd, Tennessee.
To reduce costs by $2.6 billion, Nissan will eliminate one of two shifts at the production line for the Rogue SUV in Smyrna from April and for the Altima sedan in Canton from September. Nissan also produces Rogues at its Kyushu factory in Japan, where output cuts were previously announced in August 2024 due to weak US demand for older models.
While the spokesperson declined to specify the expected number of voluntary buyouts, the Nikkei newspaper reported that Nissan could potentially cut up to 1,500 jobs.
Nissan confirmed that no involuntary layoffs are planned and that over 11,700 employees were working at the three US plants as of the end of 2024.
In November, the company announced plans to eliminate 9,000 jobs globally and reduce the capacity of its vehicle production lines amidst sales declines in China and North America.
Subsequently, Nissan and Honda Motor announced discussions for a potential merger that could form the world's third-largest auto group with an annual production capacity of 7.4 million vehicles.