Confronting a Critical Fight for Existence, Nissan Implements Significant Cuts in the US | Carscoops

      The company has started to offer buyouts to employees at its plant in Mississippi.

      Nissan is providing buyouts to U.S. workers as part of a broader global restructuring initiative.

      The automaker has halted merit-based salary increases in the United States to manage expenses.

      Overall, the company is reducing its global workforce by 20,000 jobs.

      Nissan’s cost-cutting efforts are fully underway, with internal communications indicating that the company has initiated buyouts for workers in the U.S. Additionally, global merit-based pay raises have been suspended. Although Nissan is a leading name in the automotive sector, it is currently facing a financial crisis and has implemented a robust turnaround strategy to regain stability.

      A recent internal message disclosed that Nissan is offering buyouts to employees at its Canton, Mississippi plant, along with separation packages for salaried positions in finance, planning, human resources, and IT. The exact number of employees receiving buyout offers remains unclear, but Nissan Americas CEO Christian Meunier has stated that this approach is “crucial for Nissan’s comeback.”

      “Despite considerable efforts in the U.S. to help right-size Nissan, we need to pursue additional, carefully targeted actions at the local level,” he mentioned to Reuters.

      Beyond buyouts, Nissan is tightening its budget in other areas as well. The suspension of pay raises for this fiscal year is one of the latest strategies in its ongoing cost-saving campaign. Clearly, Nissan is committed to reducing expenses to maintain its operations.

      Factory closures and layoffs are on the horizon.

      Through the Re:Nissan initiative, Nissan has confirmed it will shut down seven of its 17 global production sites. While it has not disclosed all the facilities that will be closed, at least two are expected to be in Japan and one in Thailand. Additionally, Nissan plans to consolidate its pickup truck production from Mexico and Argentina into a single facility in Mexico.

      The cost-reduction measures continue. A recent report indicates that Nissan has listed its Yokohama headquarters among assets it intends to sell by March 2026. This property is estimated to be valued at over 100 billion yen, or $698 million at the current exchange rate.

      As part of its restructuring, Nissan aims to cut 20,000 jobs globally under the Re:Nissan program. The company also seeks to achieve a 20% decrease in the average cost per employee, along with a 70% reduction in parts complexity and a decrease in the number of vehicle platforms from 13 to just seven by 2035.