Nissan announced its latest fiscal quarterly earnings, prompting a series of cost-saving initiatives, including 9,000 job cuts, as the company revealed tanking sales and a ballooning inventory.

The automaker announced its costs-saving strategy would decrease its global production by 20%, resulting in the mass layoff, and CEO Makoto Uchida will take a 50% pay cut while promising a turnaround.

The Japanese-based company racked up a $60 million loss in net income over the latest quarter through September — a substantial drop from the $1.2 billion net income reported the same quarter last year, according to Nissan’s quarterly earnings report.

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The company also saw a sharp decrease in its operating profit, having dropped from $1.3 billion in the second quarter of fiscal 2023, down to $200 million in 2024’s second quarter.

Quarterly sales also dropped from $20.2 billion to $18.9 billion, the Associated Press reported.

Nissan‘s CEO said part of what lead to the company’s strain was its inability to respond to global changes, including market tastes and inflated material costs.

The company said profitability was particularly affected by higher selling expenses in the U.S.

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“To achieve healthy growth in the future, the company will implement structure to secure sustainable profitability and cash generation, even with a projected annual sales of 3.5 million units by fiscal year 2026,” the company said in a statement.

Part of its recovery plan also includes reducing fixed costs by $1.9 billion compared to fiscal 2024, and cutting other executive committee members’ salaries.

Other ways Nissan said it plans to recover from its losses are advancing the introduction of new hybrid vehicles in China, plug-in hybrids and electric vehicles in the U.S., while also increasing sales per model “to enhance model efficiencies.”

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Uchida said the plan does not imply the company is shrinking but instead restructuring its business.

“We aim to enhance the competitiveness of our products, which are fundamental to our success, and set Nissan back on a path of growth,” he said.

“As a cohesive team, we are dedicated to working together to ensure the successful implementation of our plans.”