Nissan Motor Co. will solicit early retirement applications from administrative staff in Japan this summer, a source close to the matter said Sunday, launching such a program for the first time in 18 years as the struggling automaker aims to turn its business around.
The early retirement packages, to be offered in July and August, will target those in sales and accounting, while employees working in the development and production sections will be excluded, according to the source.
The program, covering workers aged 45 to 64, is part of the Yokohama-based automaker’s plan to cut around 20,000 jobs globally. While it has already notified employees, the number of applications to be accepted has not been revealed, the source said.
With the program, Japan’s third-biggest automaker by volume aims to cut administrative costs amid a deteriorating business environment caused by the tariff policy of U.S. President Donald Trump’s administration, including the imposition of 25 percent levies on autos from April.
Grappling with poor sales in the United States and China, the company announced restructuring measures Tuesday as it reported a hefty net loss of 670.90 billion yen ($4.6 billion) for fiscal 2024.
Under its restructuring plans, the automaker will reduce its global workforce by around 15 percent. It will also slash its vehicle plants worldwide from 17 to 10 by fiscal 2027 to address overcapacity issues.
According to a company source, Nissan is considering closing two plants in Kanagawa Prefecture near Tokyo, accounting for around 30 percent of the automaker’s domestic production capacity.
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