Nissan begins talks with union to cut jobs at European regional office

New Straits Times

2 days ago

TOKYO: Nissan Motor has begun negotiations with the union representing staff at its European regional office about changes that will include job losses, according to a company document and internal emails.
The struggling Japanese automaker, which has embarked on a major restructuring, confirmed it has entered consultations with staff representatives at Nissan Automotive Europe, its regional office in Montigny-le-Bretonneux, France, which has around 560 staff.
The office, which also oversees Nissan's operations for Africa, the Middle East, India and Oceania, is set to undergo major changes, according to a person with knowledge of the issue who declined to be identified.
Management and the union agreed to discuss voluntary redundancies before any forced layoffs, the document seen by Reuters showed. Talks are expected to conclude by October 20, with full details to be shared with staff in November, the document and the emails said.
"We are working diligently and respectfully with all parties to ensure that this process is conducted with care, transparency and in full compliance with legal requirements," Massimiliano Messina, Nissan's vice chairperson for the region, said in a July 31 email.
Messina also said in the email that no decisions had yet been made.
After taking the helm in April, CEO Ivan Espinosa announced a sweeping restructuring that includes cutting about 15 per cent of Nissan's workforce, slashing global production capacity by nearly 30 per cent to 2.5 million vehicles and the number of its manufacturing sites to 10 from 17.
The automaker, which has seen weak sales in China and the U.S. compound pain brought on from an expansionist strategy, hopes to save 500 billion yen (US$3.4 billion) with the restructuring.
In recent developments, Nissan said last week it would stop output at its Civac plant in Mexico by March next year.
It also said it will end car production at its Oppama plant in Japan by March 2028 and at Nissan-Shatai's Shonan factory by March 2027.
The automaker employs nearly 19,000 people across Europe, Africa, the Middle East, India and Oceania, with close to 60 per cent based in Europe, according to a diversity report published in October 2024.