Report: Mass Layoffs Coming to Nissan Workforce

Steph Willems
by Steph Willems

A Tuesday report in Japan’s Nikkei Asian Review claims Nissan is poised to lay off up to 10,000 U.S. workers until assembly work can resume. That’s essentially the automaker’s entire U.S. workforce, and the situation looks pretty much the same overseas.

The layoffs, which would obviously be sans pay, target Nissan’s vehicle assembly plants in Smyrna, Tennessee and Canton, Mississippi, plus the massive Decherd Powertrain Plant in Tennessee. Nikkei claims layoffs will also come to 6,000 workers in the UK and a further 3,000 in Spain. Most, if not all, are expected to be rehired once plants come back online.

Nissan, already reeling from a steep plunge in pre-pandemic sales and associated hits to its balance sheet, announced the pending shutdown of its U.S. plants on March 18th. The idle period was first pegged at March 20th to April 6th. That period soon grew, with the last word from Nissan being that the facilities will remain shuttered “through late April.”

“We will continue to monitor the situation closely and will make adjustments as needed,” Nissan said on April 1st.

Mississippi Today reported 4,000 layoffs at Canton Assembly late Monday, with a company spokesperson claiming Nissan is attempting to fashion a return-to-work plan.

“Obviously safety is the most important thing, especially if the virus hasn’t started to flatten out in terms of new cases,” said Lloryn Love-Carter. “When you have that many people in a plant, we don’t want to be a reason for the cases to grow.”

[Image: Nissan]

Steph Willems
Steph Willems

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  • 87 Morgan 87 Morgan on Apr 07, 2020

    Nissan really needs to adopt the mantra of not letting a crisis go to waste. Now is the time for them to cull the Infiniti brand and the accompanying dealer network along with allow 1/3 or so of their Nissan dealers to throw in the towel and hand back the sign. Too many stores selling too few cars for little to no profit is disastrous. A lot of these stores have prime real estate that can be repurposed to another brand or industry that can generate revenue.

    • See 1 previous
    • 87 Morgan 87 Morgan on Apr 08, 2020

      @Inside Looking Out I try to take a realistic approach along with a career spent in the retail automotive space. Infiniti is rental car fodder, the dealers retail too few to be profitable. Basically, an Infiniti store is a really nice used car dealership. Again, Nissan product is rental car fodder. Too many dealerships causes prices to be undercut to the point that most Nissan ATP is a net loser once all costs are factored in. Again, too many on the lot against too few buyers who play each store against one another. Whoever has the car the buyer wants, and has had it the longest will sell the with the largest discount to get rid of it. The reason being after X amount of time a curtailment is due to the floor plan lender; so 10% to NMAC, WF or whomever the lender is for the dealer or 8% off to the consumer and the dealer checks a box.

  • Jeff S Jeff S on Apr 07, 2020

    Not only cut the Infinity brand but cut the Titan and some of their cars. Even that might not be enough with their Jatco transmissions--"fool me once shame on you, fool me twice shame on me."

  • Inside Looking Out Inside Looking Out on Apr 07, 2020

    It seems that the Nature is on Ghosn side.

  • Thelaine Thelaine on Apr 08, 2020

    This is nothing compared to what is coming.