by Nissan cuts costs and offers payouts to employees
The company Nissan has begun a cost-cutting process by offering voluntary payouts to employees in the US. The automaker has also temporarily suspended merit-based salary increases. These steps are part of a global restructuring plan that involves cutting 20,000 jobs worldwide.
According to internal letters, Nissan is offering payouts to employees in Mississippi, as well as in the finance, planning, HR, and IT departments. Nissan Americas leader Christian Meunier stated:
“This is an important step to return Nissan to success.”
At the same time, the company has suspended salary increases in the current fiscal year to further optimize costs.
Plant closures and asset sales
As part of the “Re:Nissan” program, the company plans to close 7 out of its 17 plants worldwide, including two in Japan and one in Thailand. Nissan is also consolidating pickup truck production in Mexico and Argentina at a single Mexican facility. Additionally, the company is considering selling its headquarters in Yokohama, which is valued at nearly $700 million.
The overall restructuring plan includes not only workforce reductions but also a 20% decrease in costs per employee. Furthermore, Nissan plans to simplify its parts lineup by 70% and reduce the number of automotive platforms used from 13 to 7 by 2035. These measures indicate serious financial difficulties for the company and its attempt to return to stable market conditions. Recent years have been challenging for many automakers, and Nissan is no exception—its strategy is now focused on maximum efficiency and optimization of all processes.
