Nissan Motor is offering voluntary buyouts to workers and reducing shifts at three US factories as part of a global effort to cut $2.6 billion in costs. The move affects its vehicle-assembly plants in Smyrna, Tennessee, and Canton, Mississippi, along with an engine plant in Decherd, Tennessee.
While Nissan has not disclosed how many employees it expects to take the buyout, reports suggest the move could impact up to 1,500 jobs. However, the company has stated it does not plan to conduct involuntary layoffs.
Nissan currently employs over 11,700 workers at its three US plants.
Starting in April, Nissan will cut one of two shifts at the Smyrna plant’s Rogue SUV production line. A similar reduction will take effect in September for the Altima sedan production line in Canton. The Smyrna plant also produces Rogues alongside Nissan’s Kyushu factory in Japan, where output has already been reduced due to weak US demand for aging models.
The buyouts and shift reductions come as part of Nissan’s broader plan to streamline operations. In November, the company announced a global workforce reduction of 9,000 jobs and plans to scale back production across 25 manufacturing lines. Nissan has been struggling with declining sales in key markets, including China and North America.
The company’s restructuring efforts coincide with potential industry consolidation. In January, Nissan and Honda announced talks on a possible merger. If successful, the partnership could create the world’s third-largest automaker, producing 7.4 million vehicles annually.
With cost-cutting measures in place and a potential alliance with Honda on the horizon, Nissan is gearing up to navigate a challenging global auto market.
