Latest news with #buyouts
Reuters
6 days ago
- Automotive
- Reuters
Exclusive: Nissan offers buyouts to US workers, halts global pay rises, internal emails show
TOKYO, May 28 (Reuters) - Japan's Nissan (7201.T), opens new tab has started offering buyouts to U.S. workers and has suspended merit-based wage increases worldwide, internal emails reviewed by Reuters showed, as the automaker expands cost cuts amid weak performance in key markets. CEO Ivan Espinosa announced a new round of cost cuts this month that include closing seven production sites globally and cutting 11,000 more jobs, taking its total planned workforce reduction to around 20,000. As part of the cuts, Nissan has offered separation packages to workers at its Canton plant in Mississippi as well as to salaried workers in human resources, planning, information technology and finance, showed one email sent last week. "While substantial efforts have been made in the U.S. to help right-size Nissan, we need to take additional, limited, strategic action here at a local level," Nissan Americas Chairman Christian Meunier said in the email. The plan is "crucial for Nissan's comeback," he said. Reuters could not determine how many people have been offered buyouts or how many have accepted. A separate email reviewed by Reuters showed Japan's third-biggest automaker has also suspended merit-based pay increases globally for the current business year. The automaker said in a statement that Nissan North America is offering a voluntary separation program to a limited group of U.S. salaried employees. It declined to give more details as the process is ongoing. Cutting U.S. workforce runs counter to President Donald Trump's aim of creating jobs and boosting domestic manufacturing through initiatives including a 25% tariff on imported vehicles. But Nissan's operating profit margin in North America including the U.S., its biggest market, worsened in the business year ended March, even as it sold more cars than a year earlier. It offered buyouts to Canton workers after launching a job-cut plan in November and has now followed that up with another round. Analysts attributed Nissan's troubles to factors including an ageing line-up, a lack of hybrid models in the U.S. and excessive focus on increasing output under former top executive Carlos Ghosn whose near two-decade year tenure ended in 2018. Separately, Nissan on Tuesday said it had paid 646 million yen ($4.5 million) in compensation to former CEO Makoto Uchida and three other executive officers who left their positions at the end of March. Nissan has yet to disclose a full list of production sites it plans to close. At home in Japan, Oppama and one other plant are under consideration, sources told Reuters this month. Nissan has said it will consolidate Mexican and Argentinian pick-up truck production into a single Mexican site, and that Renault will buy its stake in their joint Indian business. It has also said it would close a Thai plant by June. On Wednesday, Bloomberg News reported that Nissan is considering raising more than 1 trillion yen from debt and asset sales which would include a syndicated loan guaranteed by the UK government. ($1 = 144.0500 yen)
CNA
6 days ago
- Automotive
- CNA
Exclusive-Nissan offers buyouts to US workers, halts global pay rises, internal emails show
TOKYO :Japan's Nissan has started offering buyouts to U.S. workers and has suspended merit-based wage increases worldwide, internal emails reviewed by Reuters showed, as the automaker expands cost cuts amid weak performance in key markets. CEO Ivan Espinosa announced a new round of cost cuts this month that include closing seven production sites globally and cutting 11,000 more jobs, taking its total planned workforce reduction to around 20,000. As part of the cuts, Nissan has offered separation packages to workers at its Canton plant in Mississippi as well as to salaried workers in human resources, planning, information technology and finance, showed one email sent last week. "While substantial efforts have been made in the U.S. to help right-size Nissan, we need to take additional, limited, strategic action here at a local level," Nissan Americas Chairman Christian Meunier said in the email. The plan is "crucial for Nissan's comeback," he said. Reuters could not determine how many people have been offered buyouts or how many have accepted. A separate email reviewed by Reuters showed Japan's third-biggest automaker has also suspended merit-based pay increases globally for the current business year. The automaker said in a statement that Nissan North America is offering a voluntary separation program to a limited group of U.S. salaried employees. It declined to give more details as the process is ongoing. Cutting U.S. workforce runs counter to President Donald Trump's aim of creating jobs and boosting domestic manufacturing through initiatives including a 25 per cent tariff on imported vehicles. But Nissan's operating profit margin in North America including the U.S., its biggest market, worsened in the business year ended March, even as it sold more cars than a year earlier. It offered buyouts to Canton workers after launching a job-cut plan in November and has now followed that up with another round. Analysts attributed Nissan's troubles to factors including an ageing line-up, a lack of hybrid models in the U.S. and excessive focus on increasing output under former top executive Carlos Ghosn whose near two-decade year tenure ended in 2018. Separately, Nissan on Tuesday said it had paid 646 million yen ($4.5 million) in compensation to former CEO Makoto Uchida and three other executive officers who left their positions at the end of March. Nissan has yet to disclose a full list of production sites it plans to close. At home in Japan, Oppama and one other plant are under consideration, sources told Reuters this month. Nissan has said it will consolidate Mexican and Argentinian pick-up truck production into a single Mexican site, and that Renault will buy its stake in their joint Indian business. It has also said it would close a Thai plant by June. On Wednesday, Bloomberg News reported that Nissan is considering raising more than 1 trillion yen from debt and asset sales which would include a syndicated loan guaranteed by the UK government. ($1 = 144.0500 yen)
Bloomberg
23-05-2025
- Business
- Bloomberg
Spate of New Deals Unveil Deep Shift in Private Equity Takeovers
Welcome to Going Private, Bloomberg's twice-weekly newsletter about private markets and the forces moving capital away from the public eye. Today, we examine the growing convergence of private and public markets, bleak prospects for up-and-coming venture capitalists and a rare private credit auction. But first, a look at how private equity firms are revolutionizing the way they finance buyouts. If you're not already on our list, sign up here. Have feedback? Email us at goingprivate@ — Erin Fuchs, Carmen Arroyo and Davide Scigliuzzo Times are tough for private equity. Endowments and pensions have reined in their PE allocations, and a protracted lull in deals and initial public offerings have slowed fundraising.
Bloomberg
22-05-2025
- Business
- Bloomberg
Private Equity Deal Rush Shows Lenders Are Losing Their Star Billing
As one of the world's largest sovereign wealth funds warned this week that private equity is ' very troubled ' right now, a spate of recent buyout deals in Europe and the US points to a possible route out of the mire: The deep shift in how much debt this industry uses to fund its takeovers. KKR & Co. has been busily dealmaking despite the gloom around President Donald Trump's tariff upheavals, snapping up a couple of Swedish health specialists in the process. Fellow private equity firm Thoma Bravo, meanwhile, has pulled together one of the year's biggest buyouts with the $10.6 billion purchase of Boeing Co.'s Jeppesen navigation unit and other assets.
