CANTON, Miss. (WLBT) - Nissan is slashing 12,500 jobs or about 9% of its global workforce to cut costs and achieve a turnaround amid tumbling profits.
The Associated Press reported on Thursday that Nissan also said it will cut global production capacity by 10% and reduce model lineups by at least 10% by the end of fiscal 2022.
Chief Executive Hiroto Saikawa said most of the jobs cut will be auto plant workers. He didn’t give a regional breakdown, but said the job cuts were needed to cut global production capacity and costs.
Nissan runs two automotive assembly plants in the southern U.S. - an assembly plant in Smyrna, Tenn., that employs 8,000 people and a Canton assembly plant that employs more than 6,000, the company said.
Lloryn Love-Carter, Nissan’s manager of corporate communications, release the following statement Thursday: Nissan has already taken steps to rightsize our North America region. We will continue to monitor and react to market demand, but have no plans for further workforce reductions at this time.
Earlier this year, Nissan laid off 400 contract workers at the Canton plant.