WASHINGTON (Reuters) - Nissan Motor will cut 9,000 jobs and 20% of its global manufacturing capacity, the automaker said on Thursday, as it scrambles to reduce costs by $2.6 billion in the current fiscal year amid a sales slump in China and the U.S.
Nissan, which has its U.S. corporate headquarters in Franklin, announced it will cut 400 billion yen from its balance sheet to stabilize losses. But company officials did not specify whether its largest manufacturing facility, the Nissan Smyrna Vehicle Assembly Plant, will be affected.
“Tennessee is important to Nissan,” Director of Corporate Communications Kyle Bazemore said to The Tennessean. “We just announced a new product that’s going to come out of there, an all new Murano that will go into production later this year.”
He also said the cuts will not affect Nissan’s “plans for electrification.”
Nissan builds the Leaf, Maxima, Murano, Pathfinder, Rogue and QX60 in Smyrna and produces engine parts at the Decherd Powertrain Plant. The company said it will reduce global production by a fifth.
CEO Makoto Uchida forfeited 50% of his monthly salary beginning this month to demonstrate the firm’s commitment to improving its finances.
“Facing a severe situation, Nissan is taking urgent measures to turnaround its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market,” the company said in a Thursday statement.