Nissan Auto manufacturer seeks to cut costs amid sales slump
FRANKLIN, Tenn. — Sluggish sales for Nissan Motor Co. has led the Japanese automotive firm to offer voluntary separation packages to many of its U.S. workers as it tries to resize itself to match slower sales.
Nissan wouldn’t say how many workers it is targeting to take the buyouts, how much money the company expects to save, or elaborate about details of the buyouts. The offers are being made to factory and white-collar workers over the age of 52.
Nissan is downsizing its workforce in an attempt to stabilize the company that has seen a very challenging industry environment.
Nissan announced that it will reduce its U.S. workforce of 20,000 employees by offering severance packages to employees across its core and luxury brands. The company says that the buyout offer will be voluntary, available to both hourly and salaried workers aged 52 years and older. Nissan wouldn’t say if there will be mandatory layoffs should that number remain unmet.
This news comes just months after the automaker announced a nine-percent cut to its global workforce, putting 12,500 total jobs on the proverbial chopping block globally. It’s not clear if this round of buyouts is related to that decision. Nissan, iIn summer of 2018, reduced its North Amercian auto production by 20% due to seeing slow sales.
In 2007 Nissan offered buyouts and more Nissan employees took the buyouts than what was expected. Of the 6,200 eligible workers, some 775 employees elected to leave the auto maker’s Smyrna and Decherd, TN, plants, which was more than double expectations.
Nissan’s U.S. sales slumped almost 10% last year, with the Nissan brand down 8.7% and its Infiniti luxury brand off 21.1%. Many analysts are expecting total U.S. Nissan auto sales to drop this year.