By Daniel Leussink and Gilles Guillaume
TOKYO/PARIS (Reuters) -Nissan will eliminate 87 positions at its European regional office in France, a company document and internal emails showed, as part of CEO Ivan Espinosa’s global restructuring and turnaround plan that includes a 15% cut in headcount.
The struggling Japanese automaker is working to streamline operations and return to profitability as it grapples with prolonged challenges in key markets such as Europe.
Espinosa’s restructuring plan includes slashing Nissan Motor’s global production capacity by nearly 30% to 2.5 million vehicles and reducing manufacturing sites to 10 from 17.
Most of the roles slated for elimination at the European office are in marketing and sales, according to the company document. Of the 87 positions, 64 were filled when the agreement was reached last month, it showed.
Nissan is also creating 34 new roles and opening additional vacancies to support internal redeployment, meaning the final number of redundancies will be lower.
The company employs about 570 people at its Montigny-le-Bretonneux office, which oversees operations across Europe, Africa, the Middle East, India and Oceania.
Nissan confirmed in a statement on Thursday that management in Europe and employee representatives had reached an agreement and that the company had announced changes to its organisation.
“This decision is driven by the need to reflect the reality of today’s business environment and to address specific challenges at Nissan,” the company said.
The changes included simplification of roles and the removal of some management layers, boosting efficiencies throughout its organisation, it said.
The cuts were formalised in an October 16 agreement with union representatives and will be implemented in phases, beginning with a voluntary separation programme. If voluntary exits fall short, forced redundancies could begin in early February, according to the company document.
Loic Salomon, the CFDT union representative who signed the agreement, did not respond to a request for comment. CFDT is France’s largest union.
In a town hall with staff on Wednesday, regional chairperson Massimiliano Messina called for the need to make operations faster and more agile.
“It’s not just cutting the fat,” Messina said. The Montigny office must also build muscle to strengthen its role in the region, he said, according to a person who attended the event.
Employees opting for internal transfers may receive a 5,000 euro ($5,830) gross bonus, while those choosing to seek a job outside the company will be supported by an outplacement agency and offered up to two years of redeployment leave depending on age.
Nissan reported last week that its European retail sales slipped 8% over the first half of the financial year. The automaker also trimmed its full-year regional outlook by 3% to 340,000 vehicles, although it expects recovery through upcoming launches and dealer programmes.
Nissan said it will maintain the Montigny office, which Messina said was “absolutely vital” for the automaker’s regional business, and continue investing in employee development.
The automaker employs nearly 19,000 people across Europe, Africa, the Middle East, India and Oceania, with close to 60% based in Europe, according to an October 2024 diversity report.
The company document did not explain why the targeted positions were selected.
($1 = 0.8575 euros)
(Reporting by Daniel Leussink in Tokyo and Gilles Guillaume in Paris; Editing by Tom Hogue)
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