Nissan has announced plans to lay off thousands of employees and reduce global production in response to declining sales in China and the US.
The Japanese automaker plans to cut 9,000 jobs worldwide as part of a cost-saving strategy, which includes reducing its global production by 20%.
Nissan did not immediately respond to BBC News’ request for specifics on the locations of the job cuts.
The company currently employs over 6,000 people at its manufacturing plant in Sunderland, North East England.
Additionally, Nissan has revised its 2024 operating profit forecast down by 70%, marking the second downgrade this year.
“These turnaround measures do not imply that the company is shrinking,” said Nissan’s chief executive Makoto Uchida.
“Nissan will restructure its business to become leaner and more resilient.”
The company said Mr Uchida’s monthly salary is being cut by half and that other senior executives will also take pay cuts.
Nissan’s shares were trading more than 6% lower on Friday morning in Tokyo.
Growing competition in China has led to falling prices, which has left many foreign car makers there struggling to compete with local firms like BYD.
China has become the world’s biggest producer of electric vehicles as many Western rivals have failed to keep up.
“Nissan, like many Japanese car makers, has been very slow to the electrified vehicle party in China and this is reflected in their results,” said Mark Rainford, a China-based car industry commentator.
The company is also facing challenges in the U.S., where inflation and high interest rates have impacted new vehicle sales.
Decreased demand has prompted car manufacturers to lower prices, reducing their profit margins.
In November of last year, Nissan and its partners unveiled a £2bn ($2.6bn) investment plan to produce three electric vehicle models at its Sunderland plant.
The company confirmed that it will manufacture electric versions of the Qashqai and Juke at the facility, along with the next generation of the electric Leaf, which is already produced there.