Nissan Announces Job and Production Cuts in the U.S. Amid Efforts to Return to Profitability
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Nissan has announced significant job and production cuts in the United States as part of its broader efforts to return to profitability and streamline operations. The company plans to reduce its global workforce by 9,000 employees, which is approximately 6% of its more than 133,000 global workforce. This initiative is part of a larger plan to cut global production capacity by 20% and reduce costs by $2.6 billion.In the U.S., the job cuts and production adjustments are being implemented across several plants:
Smyrna, Tennessee Plant: This plant, which manufactures the Murano, Pathfinder, Rogue, and Infiniti QX60 models, will see one production line maintained with two shifts, while another line will be consolidated to a single shift.
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Canton, Mississippi Plant: The plant, which produces the Altima sedan and Frontier pickup, will experience a reduction in line speed and the consolidation of another line.
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Decherd, Tennessee Plant: This engine manufacturing plant will see gradual shift adjustments, with some shifts maintained and others reduced by one shift.
Nissan is also offering voluntary buyouts to avoid layoffs, allowing employees to leave the company with severance packages. The company aims to create a leaner, more resilient business capable of swiftly adapting to market changes.These measures are driven by Nissan's need to address sinking sales, ballooning inventory, and weak financial performance. The company reported a quarterly loss and has been struggling to manage its production levels effectively.In addition to these cuts, Nissan and Japanese rival Honda are working on forming a joint holding company to integrate their businesses, with a planned definitive agreement by June 2026. This partnership includes collaboration on electric vehicles, which was initially announced in March and later expanded in August 2024.