Nissan Motor Co. said it will cut 9,000 jobs and scale back its global manufacturing capacity by 20% as part of a cost-saving effort amid declining sales in major markets, while Stellantis announced plans to cut a shift at its Toledo Assembly Complex in Ohio, leading to indefinite layoffs for around 1,100 union-represented employees starting Jan. 5.
Nissan is targeting a $2.6 billion reduction in costs in the current fiscal year, the company revealed Nov. 7.
In a press conference, CEO Makoto Uchida acknowledged Nissan’s struggle to keep pace with market trends, particularly in the U.S., where the company lacks a competitive lineup of hybrid vehicles.
“We didn't foresee HEVs [hybrid electric vehicles] ramping up this rapidly,” Uchida said.
The restructuring measures include a global job reduction of approximately 6.7% of Nissan’s 133,580 employees. However, Uchida declined to specify where the job and production cuts would occur.
While Nissan has a significant presence in the U.S., with its corporate headquarters in Franklin, TN, and major factories in Tennessee and Mississippi, it remains unclear if these sites will be impacted.
“Tennessee is important to Nissan,” Director of Corporate Communications Kyle Bazemore told The Tennessean, noting the upcoming production of the all-new Murano at Nissan’s Smyrna plant.
In addition to job cuts, Nissan plans to reduce its vehicle development lead time to 30 months and deepen partnerships with Renault and Mitsubishi Motors. The automaker also revealed plans to sell up to 10% of its stake in Mitsubishi Motors, aiming to raise $445.45 million.
Nissan’s latest quarterly report reflects the urgency of these measures. Operating profit dropped 85% to 31.9 billion yen for the July-September period, missing analysts' expectations. The company’s global sales also fell 3.8% during the first half of the fiscal year, driven by a 14.3% drop in the Chinese market and a nearly 3% decline in the U.S., which together account for almost half of Nissan’s total sales by volume.
As Nissan undergoes this extensive restructuring, Uchida and other executives have voluntarily agreed to take pay cuts, with the CEO forfeiting 50% of his monthly compensation starting this month.
Stellantis to Lay Off Workers at Toledo South Assembly Plant
In its announcement of the shift cut at its Ohio facility, Stellantis cited the need to reduce inventory levels and improve operational efficiency as driving factors. The company said the layoffs will specifically impact the Toledo South Assembly Plant, which produces the Jeep Gladiator, and will transition from a two-shift to a one-shift operating pattern.
“As Stellantis navigates a transitional year, the focus is on realigning its U.S. operations to ensure a strong start to 2025, which includes taking the difficult but necessary action to reduce high inventory levels by managing production to meet sales,” Stellantis spokeswoman Jodi Tinson shared in a statement provided to the Detroit Free Press. “These are difficult actions to take, but they are necessary to enable the company to regain its competitive edge and eventually return production to prior levels.”
The Toledo Assembly Complex currently employs approximately 4,400 workers across its South and North plants, the latter responsible for manufacturing both gas-powered and hybrid versions of the Jeep Wrangler. The company has issued Worker Adjustment and Retraining Notification (WARN) notices to state and local officials as well as to the United Auto Workers (UAW) union.
According to Stellantis, affected employees will receive supplemental unemployment benefits amounting to 74% of their pay for one year, along with an additional year of transition assistance. Health care coverage will also continue for two years as part of the company’s commitment to its UAW contract obligations.
This announcement follows similar workforce reductions earlier in the year at Stellantis' Warren Truck Assembly and other facilities, as the automaker faces a challenging sales environment in the U.S. The cuts come during a period of heightened labor tension, as UAW officials recently voiced concerns over Stellantis' approach to meeting investment commitments at a rally in Detroit.
