Nissan Announces Buyouts for US Workers, Freezes Global Pay Rises Amid Cost Cuts

Japanese automaker Nissan has initiated a significant cost-cutting strategy by offering buyouts to US workers and suspending merit-based pay increases worldwide, according to internal emails reviewed by Reuters. This move comes as the company grapples with weak performance in key markets, prompting a broader restructuring effort to stabilize its financial standing.

As part of these measures, Nissan has extended separation packages to employees at its Canton plant in Mississippi, alongside salaried staff in departments such as human resources, planning, information technology, and finance. An internal email from Nissan Americas Chairman Christian Meunier highlighted the need for additional strategic actions at a local level to 'right-size' the company’s operations in the US.

The suspension of global pay rises is another critical step in Nissan’s plan to curb expenses. This decision affects employees worldwide, reflecting the scale of the challenges the automaker faces amid declining sales and market pressures in regions like the US and China.

Nissan’s latest actions follow a series of cost-cutting announcements, including plans to reduce its global workforce by 20,000 and shut down seven production sites. The company reported its largest quarterly loss in 25 years, underscoring the urgency of these restructuring efforts.

Industry analysts suggest that Nissan’s struggles are compounded by increased competition, new US tariffs, and shifting consumer preferences towards electric vehicles. The automaker is also reportedly seeking a $7 billion funding push to support its turnaround strategy.

While Nissan has not publicly detailed the full scope of the buyouts or the exact number of affected employees, these internal communications indicate a challenging road ahead for the company and its workforce. Employees and stakeholders alike await further updates on how these measures will impact Nissan’s long-term recovery.