Nissan Plans To Cut 1,000 Jobs
Dec. 01, 1999
DETROIT (AP) _ Nissan Motor Co. laid out its plans to reduce about 1,000 jobs, or 10 percent, of its U.S. workforce in a bid to cut costs.
The company said Tuesday it would eliminate the jobs through consolidating offices, attrition and layoffs, and would cut across all levels of the company, including executive posts.
The job cuts were announced in October as part of Nissan chief Carlos Ghosn's plans to cure the company's financial wounds. The $1.9 billion plan will cut 21,000 jobs worldwide with the goal of making the second-largest Japanese automaker profitable in 2001.
``We must operate more efficiently in North America to remain globally competitive,'' said Nobuo Araki, president and CEO of Nissan North America. ``Through our restructuring efforts, we will gain additional marketing and production efficiencies.''
In the United States, the company will save money by merging its manufacturing arm with Nissan North America, its main sales, marketing and design division. Nissan builds two truck models and a sedan at a factory in Smyrna, Tenn., that employs 6,000 people.
Nissan North America also will consolidate some office functions with Nissan's finance company, and will close branch offices in New York and Los Angeles.
The debt-ridden Japanese automaker undertook a campaign to remake itself after Renault SA of France bought a 36.8 percent stake for $5.4 billion earlier this year.
Once considered a trendsetter with such cars as the Datsun 240Z, Nissan in the last decade has been known more for blandness. One bright spot has been the United States, where sales are up 9 percent so far this year.
Ghosn has acknowledged that Nissan failed to act on obvious problems such as the need to streamline its broad selection of models, cut costs, and design more attractive cars.