Japanese automobile manufacturer Nissan (NSANF) confirmed Thursday that plans to reduce its workforce are underway with retirement packages for about 1,000 workers in the U.S. This has the employees accepting early retirement offers that will result in them leaving the company by the end of the year.
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Nissan currently employs about 17,000 people in the U.S. That has the retirement packages covering roughly 5.89% of the company’s employees in the country. When comparing that to worldwide employees, it represents less than 1% of Nissan’s 133,580 workers around the world.
More Nissan Job Cuts Are Coming
Nissan announced earlier this month that it intends to cut 9,000 jobs worldwide. The 1,000 employees taking early retirement are part of that plan. That means investors are going to hear more about NSANF layoffs in the months to come. Considering the 133,580 workers under Nissan’s employ, these layoffs are set to cut its workforce by approximately 6.7%.
The reason behind these cuts is the automobile company’s falling sales in China and North America. That even resulted in it reducing its annual profit outlook by 70% while also revealing a 20% drop in manufacturing capacity.
Shares of NSANF have felt the effects of this lackluster performance. The stock is down 29.29% year-to-date while also having fallen 29.47% over the last 12 months. Following today’s layoffs news, the stock is only seeing a minuscule increase.
Is NSANF Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Nissan is Strong Sell based on one Hold rating and four Sell ratings assigned over the last three months. That brings with it an average price target of $2.26, a high of $2.84, and a low of $1.61. This represents a potential downside of 15.67% for NSANF shares.
