Nissan executives on Thursday said they will cut 12,500 jobs around the world and trim their product lineup by 10 percent in the next three years.
The layoffs already have begun — and lines at plants in Indonesia and Spain have been idled — and have resulted in a reduction of 6,400 positions. In the coming three years, Nissan leaders said, another roughly 6,100 people at six locations will lose their jobs. Combined, the cuts will trim Nissan’s employee base by about 10 percent and lower its overall production capacity to 6.6 million vehicles from 7.2 million.
A Nissan spokeswoman on Thursday said the car maker’s North America headquarters operation in Cool Springs, its assembly plants in Smyrna and Canton, Mississippi, and engine factory in Decherd are not being targeted for cuts. (Canton has seen some reductions of late.) The first two facilities have the capacity to produce nearly 1.1 million vehicles annually and the company employs more than 11,000 people in Tennessee.
Nissan CEO Hiroto Saikawa on Thursday would not identify plants have been slated for cutbacks.
“While some of these initiatives are already underway, the company expects that substantial improvements in its performance will take time,” the company said in its fiscal Q1 financial report Thursday, a set of numbers that showed that an operating profit drop of more than 98 percent on sales that fell 13 percent.