Nissan has halted merit-based salary increases worldwide for the current fiscal year, according to a Reuters report citing an internal email. The automaker has also introduced a voluntary separation program for select U.S. salaried employees, though details remain undisclosed as the process is still underway.
The decision follows a decline in Nissan’s operating profit margin in North America—its largest market—despite selling more vehicles in the fiscal year ending March. Internal communications reviewed by Reuters also revealed that the company is offering buyouts to U.S. employees.
Earlier this month, CEO Ivan Espinosa unveiled further cost-cutting measures, including shutting down seven global production sites and eliminating an additional 11,000 jobs. This brings Nissan’s total planned workforce reductions to roughly 20,000.
As part of these efforts, Nissan has extended separation packages to employees at its Mississippi plant and salaried staff in HR, planning, IT, and finance. Christian Meunier, Nissan Americas Chairman, stated in an email that while significant steps have been taken to streamline U.S. operations, further strategic actions are necessary for the company’s recovery.
Reuters could not confirm the number of employees offered or accepting buyouts. The latest round follows an initial job-cut initiative launched in November.
In a separate development, Nissan disclosed that it paid 646 million yen ($4.5 million) in compensation to former CEO Makoto Uchida and three other executives who departed in late March.