Japanese automaker Nissan announced it would lay off 9,000 employees and cut sales. forecast for the 2024-25 financial year, citing it as part of the urgent measures taken to deal with “a serious situation”, the AFP news agency reported on Thursday (November 7).

“Nissan “It will reduce its global production capacity by 20 percent and reduce its global workforce by 9,000,” the automaker told the agency.

The company’s net profits fell 93 percent in the first half, according to Nissan CEO Makoto Uchida, citing weak sales in the North American market.

Nissan now expects a net profit sales of 12.7 trillion yen ($80 billion), down from the 14 trillion yen previously forecast, the report said.

“Faced with a serious situation, Nissan is taking urgent measures measures to turn around its performance and create a leaner, more resilient business that can quickly adapt to market changes,” Nissan said in an official statement according to the report.

Uchida will voluntarily forgo 50 percent of his monthly compensation starting November 2024 and other members of the executive committee will voluntarily accept a salary reduction, according to the statement.

Nissan and its Japanese Competitors are also struggling to hold their own in China, as fast-growing electric vehicle makers, backed by Beijing, jump into the race.

“Net profit is to be determined due to the ongoing assessment of the costs necessary for the planned turnaround efforts,” Uchida said, as the company did not issue a net profit forecast on Thursday.

North America Market

Nissan’s core vehicle models are not performing as well as before in North America: “From a cost and brand strength perspective, we will rebuild our brand by America” Uchida said according to the report.

Along with other measures, Nissan will reduce its stake in Mitsubishi Motors by selling shares back to the company. The stake in Mitsubishi will fall from 34 percent to almost 24 percent.

Nissan has had a difficult decade, including the shock arrest in 2018 of former boss Carlos Ghosn, who then skipped bail and fled Japan, hidden in a music box.

Ghosn remains an international fugitive in Lebanon and denies the allegations against him. He said he fled Japan because he did not believe he would receive a fair trial.

When asked about Donald TrumpAfter Nissan’s victory in the U.S. presidential election, Uchida said Nissan was “hearing various things, like tariffs, but it’s not just us,” according to the agency report.

“We will lobby and the direction of our medium- and long-term plans must remain unchanged, but we will carry out our activities while carefully monitoring the situation,” he told the agency.