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Nissan Orders Two-Day Furlough for US Workers to Cut Costs

Dec. 5, 2019
In an effort to cut costs, Nissan North America will cut employee travel in half and temporarily close two offices in the U.S.

Nissan Motor Co. ordered a furlough of employees for two days at the beginning of January, the latest cost-cutting move as U.S. sales continue to slide.

Nissan North America is closing U.S. offices on Jan. 2 and 3 to “optimize business performance and competitiveness,” the company said in an emailed statement. In a memo to employees, North America Chairman Jose Valls issued a 50% cut in employee travel expenses, effective immediately, Automotive News reported.

Nissan, grappling with an aging vehicle lineup and profit at decade lows, posted a third straight monthly U.S. sales decline in November, delivering fewer than 100,000 vehicles. Makoto Uchida took over as chief executive officer this month to try to steady a company that has been in turmoil since former Chairman Carlos Ghosn was arrested a year ago. Uchida is slogging through a global restructuring that will trim 12,500 jobs.

Nissan said in January it would eliminate two shifts at its assembly plant in Canton, Mississippi, laying off as many as 700 workers. Its U.S. operations are based in Franklin, Tennessee.

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