Nissan Motor Co. has begun offering voluntary buyouts to U.S. employees and has suspended merit-based pay raises globally as part of a major cost-cutting campaign.

The moves come as the Japanese automaker struggles with weak performance in key markets, including the United States, Reuters reported.

In an internal message to staff, Nissan Americas Chairman Christian Meunier acknowledged the company had made “substantial efforts” to adjust its operations in the U.S. but said “additional, limited, strategic action” was necessary. “This plan is crucial for Nissan’s comeback,” Meunier said.

Buyout offers have been extended to workers at the company’s Canton plant in Mississippi, as well as to salaried employees in departments such as human resources, planning, IT, and finance. While the exact number of employees affected has not been disclosed, Nissan confirmed that the program is part of a voluntary separation initiative for a “limited group” of U.S. staff.

In a separate internal communication, Nissan announced it would suspend all merit-based salary increases worldwide for the current business year, marking another step in its global effort to reduce costs.

These developments follow CEO Ivan Espinosa’s announcement earlier this month of an aggressive restructuring effort. The plan includes closing seven production facilities across several regions and cutting 11,000 additional jobs, bringing Nissan’s total planned workforce reduction to approximately 20,000.

The U.S. job cuts come at a time when the federal government is focused on strengthening domestic manufacturing. President Donald Trump has emphasized job creation in the auto sector and implemented tariffs aimed at reducing reliance on foreign-built vehicles. Nissan’s downsizing, especially in the U.S., runs counter to these goals.

Despite increasing vehicle sales in North America during the last fiscal year, Nissan’s operating profit margins in the region, its largest market, deteriorated. Analysts blame the company’s performance on an ageing vehicle lineup, a slow response to hybrid and electric vehicle trends in the U.S., and past strategies focused heavily on volume over profitability under former CEO Carlos Ghosn.

Nissan has not yet publicly identified all of the global production sites it plans to shutter. However, in Japan, the Oppama plant and another domestic facility are reportedly under review. Internationally, the company has announced plans to consolidate its pickup truck production in Mexico, close a plant in Thailand by June, and transfer its stake in a joint venture in India to Renault, its long-time alliance partner.

Separately, Nissan disclosed that it paid ¥646 million (approximately $4.5 million) in compensation to outgoing CEO Makoto Uchida and three other executives who stepped down at the end of March.

The sweeping changes reflect Nissan’s broader push to stabilize its finances and redefine its global strategy in an increasingly competitive auto industry — one rapidly shifting toward electrification, efficiency, and technological innovation.