It is also learnt that Nissan India had announced late in 2018 a voluntary retirement scheme (VRS) or voluntary separation scheme (VSS) to employees in India.
India will be part of Japanese auto giant Nissan Motor’s jobs cut plan which was announced on Thursday. The global auto giant has announced to cut 12,500 jobs worldwide, including little over 1,700 (around 13%) in India. The move is aimed at restructuring the entire global operations due to weak performance of the company, particularly in emerging markets.
While sources in the know — both at the company and workers’ union levels – confirmed the development, they seem to have no idea at which levels job cuts are going to be. Some job cuts have already taken place through VRS, it is learnt.
It is also learnt that Nissan India had announced late in 2018 a voluntary retirement scheme (VRS) or voluntary separation scheme (VSS) to employees in India. Nissan had then said in its India mid-term plan, the company has to optimise opportunities for transfers and advancement between manufacturing, R&D and other operations for all employees; reinforcing flexibility of manufacturing through career mobility between alliance organisations, recruitment of people with future-technology skills and in areas where there is surplus of skills, offering a voluntary option of financial support for plant employees who wish to pursue opportunities elsewhere.
According to sources, the company’s VRS/VSS scheme has failed to generate much response and only a few have opted for it. The scheme is still continuing in Indian operations as part of the Nissan Motor’s restructuring plan.
When contacted, a company official declined to comment. However, a source in the workers’ union said, “Yes, we have come to know about job cuts, but have no idea what exactly it is and at what levels.” He, however, admitted that the company had introduced the VSS a few months back and a smaller number of people have opted for the same so far.
According to the union official, the alliance plant (Renault-Nissan) has around 3,700 technicians and another 2,300 staff of supervisors, managers, team leaders, etc. Nissan has a manufacturing plant in Chennai in association with its global partner Renault. Despite having a production capacity of 4.8 lakh units per annum, the alliance partners could not even cross 50% when it comes to capacity utilisation. Both Nissan and Datsun have failed to muster good response from India despite their new launches over the years. Kicks, its recent launch, also failed to meet Nissan India’s expectations.
According to Siam data, Nissan India reported a 28.76% drop in its overall sales to 16,900 units in the first quarter of the current fiscal. Domestic sales declined by 49.52% to 5,353 units. For the fiscal ended March 2019, Nissan India reported a 31% drop in its domestic sales to 36,525 units, the Siam data showed.