Nissan May Trim Almost 25% of Carson Work Force
DETROIT — Nissan Motor Corp. could cut almost a quarter of its 2,000 workers at its Carson sales headquarters in a restructuring of its U.S. marketing operations, the company said Tuesday.
A maximum of 450 workers will be granted buyouts in the next six weeks, though the firm expects only about half that number to take the offers. Nissan also plans layoffs of an undetermined number of employees in March.
Nissan is offering sweetened retirement packages to about 250 workers who are at least 50 years old and have at least five years’ tenure. Other employees are being offered separation packages providing three months’ to one year’s pay, depending on length of service.
Robert Thomas, president and chief executive, said the voluntary retirement and severance packages offered this week to sales workers in California results from an ongoing reevaluation of Nissan’s U.S. marketing efforts.
“We need to be ready to operate in a more innovative, agile environment,” Thomas said in an interview at the North American International Auto Show here, where Nissan displayed its new 1998 Altima sedan.
Nissan says it is profitable in the United States, and executives said the cuts were not imposed from Japan, where the company has been struggling financially for several years.
“They are making money here but may think their margins aren’t what they should be,” said David Healey, an analyst for Burnham Securities.
The company said its marketing budget was trimmed, but it said the downsizing was not merely a cost-cutting move. Rather, they said, it is related to a rethinking of Nissan’s marketing activities amid rapid changes in automotive retailing.
Nissan is in the midst of a $200-million advertising campaign intended to improve the company’s image and boost long-term sales. Thomas said the program is successful and already has increased sharply the number of people intending to buy a Nissan in the next year.
After several good years, Nissan’s U.S. sales slipped 3.4% last year, while those of rivals Honda and Toyota both increased.
