Nissan has been mired in financial issues for some time now, which have resulted in the appointment of a new CEO, massive job cuts, various other cost-cutting measures, and a failed merger with rival Honda that fell apart mere months ago after the two sides couldn’t come to an agreement regarding just how that merger was slated to pan out, logistically speaking. As Ford Authority reported last month, Nissan plans to cut 20,000 jobs across the company’s global operations, which includes the roughly 9,000 reductions that were announced previously, and now, it’s eyeing even deeper cuts.
According to internal emails obtained by Reuters, Nissan is offering separation packages to U.S. workers at its Canton plant in Mississippi, as well as for a variety of salaried employees in departments including human resources, planning, information technology, and finance, while also suspending merit-based wage increases across its entire global operations for the current business year. It’s currently unclear how many Nissan employees have been offered these packages, but a spokesperson did confirm that the automaker is offering a voluntary separation program to a limited number of salaried employees in the U.S.
“While substantial efforts have been made in the U.S. to help right-size Nissan, we need to take additional, limited, strategic action here at a local level,” Nissan Americas Chairman Christian Meunier said in the email. “The work we are doing today is crucial for Nissan’s comeback – delivering the vehicles, revenue and delighted customers necessary for our long-term success.”
As Ford Authority recently reported, Nissan CEO Ivan Espinosa previously announced that he expects Nissan to post a record net loss in the current fiscal year that ended in March, coming in around ¥700-¥750 billion ($4.7-$5.1 billion USD). However, a recent report indicated that Nissan plans to utilize part of the joint-venture Ford BlueOval SK Battery Park site in Kentucky to build batteries for its own EVs, which would help it avoid tariffs.
Comment
I don’t get the falling demand. They’ve slashed prices on popular models and few know about Nissan’s struggles.