Nissan is cutting back on production at its U.S. plants and offering buyouts to factory workers as part of its efforts to regain profitability. This decision is part of the company’s broader plan, announced two months ago, to eliminate 9,000 jobs globally, including in China, after experiencing a quarterly loss due to declining sales and growing inventory.
At the Smyrna, Tennessee plant, one production line will continue with two shifts, while the other will reduce to one shift. This plant produces the Murano, Pathfinder, and Rogue SUVs, as well as the Infiniti QX60 luxury vehicle.
In Canton, Mississippi, where the Altima sedan and Frontier pickup are made, Nissan will slow down one production line and consolidate another.
At the Decherd, Tennessee plant, which manufactures engines, the shift reductions will be more gradual, with some shifts being maintained and others reduced by one.
When Nissan unveiled its recovery plan in November, it did not specify which areas would be affected by the job cuts.
The reduction of 9,000 jobs represents about 6% of the company’s global workforce, which exceeds 133,000 employees. Additionally, Nissan intends to reduce its global production capacity by 20%.
Nissan, headquartered in Yokohama, stated that the recent job offers are part of its broader plan to reduce its workforce and aim to improve the efficiency and flexibility of its operations.
The company emphasized that it is taking urgent global actions to improve its performance and create a more streamlined, resilient business capable of quickly adapting to market changes.
In addition, Nissan is collaborating with its Japanese competitor, Honda Motor Co., to create a joint holding company that will integrate their businesses, with plans to launch in 2026.
The two automakers announced in March that they would join forces on electric vehicles, and in August, they expanded the scope of their partnership. They expect to reach a “definitive agreement” by June.
Nissan will release its financial results for the October-December period on February 13. Following news of its plans in the U.S., Nissan’s stock rose by 2% in Tokyo trading.