(Reuters) – Japan’s No. 2 automaker Nissan Motor Co <7201.T> said on Thursday its U.S. unit would halt operations for two days next month, as the company tries to reverse a slide in profitability in the country.
The company has been trying to cut costs after its profit plunged this fiscal year, hit by a stronger yen and falling sales in China and the United States. It was even forced to slash its forecast for operating income to an 11-year low.
“To optimize business performance and competitiveness, Nissan North America will implement two office closure days in the U.S. on January 2 and January 3, 2020,” Nissan said in a statement.
The closure, however, would not affect dealers including those of its Infiniti brand, the company said.
Automotive News had earlier reported https://www.autonews.com/automakers-suppliers/nissan-orders-two-day-furlough-us-employees-amid-falling-sales that Nissan was putting the entire U.S. organization on two days of unpaid furlough next month and cutting employee travel expenses by half, effective immediately, citing a memo to employees.
The closure will affect the company’s headquarters in suburban Nashville and assembly plants in Smyrna and Decherd, Tennessee and Canton, Mississippi, the report said.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli)