Nissan Motor Co. has reported that approximately 1,000 of its U.S. employees, accounting for about 6% of its workforce, have accepted early retirement packages as part of a broader global job cut initiative that aims to eliminate 9,000 jobs worldwide. This decision comes in response to a significant 70% reduction in the company's annual profit outlook, primarily driven by declining sales in China and North America [2ddc056e].
As of March 2024, Nissan employed around 17,000 people in the U.S., and the early retirements are part of a strategic move to streamline operations amidst challenging market conditions. In addition to the workforce reductions, Nissan has announced a 20% reduction in its manufacturing capacity, further indicating the company's efforts to adapt to the shifting landscape of the automotive industry [2ddc056e].
This announcement follows a broader trend in the automotive sector, where companies like Ford are also making significant workforce adjustments due to similar pressures. Ford recently revealed plans to cut about 4,000 jobs in Europe, citing weak electric vehicle sales and increased competition as key factors [8462a590]. The challenges faced by both Nissan and Ford highlight the ongoing transformation in the automotive industry, as manufacturers grapple with the transition to electric vehicles and the impact of changing consumer demands [8462a590][2ddc056e].