Nissan to cut factory workers in Tennessee
In a rare move for a major Japanese automaker in the U.S., Nissan Motor Co. said Tuesday that it was offering a cash buyout to employees as it adjusts the product mix at its two Tennessee manufacturing plants.
The company said improved manufacturing efficiencies also led it to offer the plan to cut about 300 of 6,200 jobs at the factories. Analysts cautioned against reading the move as a sign of trouble.
"This is no big deal," said Ken Elias, a Scottsdale, Ariz.-based partner at independent consulting firm Maryann Keller & Associates. "They have found some production efficiencies and they need to cut" payroll to take advantage of them.
Nissan Chairman Carlos Ghosn recently cited a slump in U.S. sales, especially in sport utility vehicles and pickup trucks, as one reason the company's global profit was likely to fall this year after six successive annual increases.