Nissan Offering Older Employees Buyouts To Cut Costs

Auto News reports that late Tuesday, the Japanese car manufacturer announced it will offer voluntary buyouts to Nissan and Infiniti hourly and salaried employees 52 years and older in the U.S. Nissan will also cut its regional sales operation. Nissan North America currently has more than 20,000 hourly and salaried employees.

Speaking on the matter, Nissan spokesman Chris Keeffe refused to say how many employees are expected to take up the buyout offer. He also failed to state if layoffs will be made if there are not enough volunteers for the separation program.

Nissan’s U.S. sales fell by 9.9 per cent to 1.35 million vehicles in 2019. The company’s share of the market also dropped from 8.6 per cent in 2018 to 7.9 per cent.

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In 2019, Nissan offered similar voluntary buyouts to hundreds of salaried employees in the United States and also cut 380 jobs. Towards the end of the year, Nissan also put its entire U.S. operation on two days of unpaid furlough and cut employee travel budgets by 50 per cent.

The cuts are continuing for Nissan’s international operation with reports stating it will cut at least 4,300 white-collar jobs and close two manufacturing sites in a bid to add at least 480 billion yen ($4.4 billion) to its bottom line by 2023.

"Like many other automotive companies, Nissan North America is taking proactive steps to assess our structure, workflow, and operational efficiencies amid a challenging industry environment," senior vice president of Nissan Sales and Marketing Airton Cousseau said in a recent letter sent to Nissan dealers. "This reorganization will create office synergies that will enable a leaner organization while still focusing on dealer profitability and your ability to continue providing a quality customer experience. You will continue to receive all the support you need.”