Nissan, the Japanese automaker, announced it will cut 9,000 jobs— six percent of its 133,000 global workforce— after experiencing a decline in sales during the most recent fiscal quarter.

Nissan recorded a 9.3 billion yen ($60 million) loss in the quarter ending in September; a sharp contrast to the 190.7 billion yen profit in the same period last year.

Sales dropped to 2.9 trillion yen ($19 billion) from 3.1 trillion yen in the previous year while the company struggled to adapt to changing market conditions.

CEO Makoto Uchida took responsibility for the poor performance, announcing he would take a 50 percent pay cut.

Nissan Job Cuts: What to Know

Despite the setback, Uchida reassured investors, saying the company is committed to restructuring and a future turnaround.

He said “We will restructure Nissan to become leaner and more resilient.”

Uchida also acknowledged that the company had not responded swiftly enough to shifts in global market trends and rising raw material costs, and promised to make necessary changes moving forward.

As part of its restructuring efforts, Nissan will slash its global production capacity by 20 percent.

However, Uchida did not specify which regions would be most affected by the cuts.

Nissan’s struggles were particularly notable in the U.S., a key market for the automaker, where its vehicles have struggled to compete with rivals including Ford, Toyota, and Tesla.

How Will Nissan Restructure Itself?

The company has been reviewing all aspects of its operations to determine how best to navigate these challenges.

For the fiscal first half, Nissan’s revenue edged down one percent to 5.98 trillion yen ($39 billion) compared with the same period last year.

Its profit for the six months dropped significantly, falling to 19.2 billion yen ($124 million) from 296.2 billion yen in the prior year.

The company now expects sales of 3.4 million vehicles, down from the previous estimate of 3.65 million. The revised forecast brings Nissan’s expected sales back in line with last year’s figures.

Will Nissan Recover From Its Losses?

Nissan has also lowered its full-year revenue projection to 12.7 trillion yen ($82 billion), down from its earlier forecast of 14 trillion yen ($91 billion).

The company refrained from providing a profit forecast, citing ongoing uncertainty but promised to release one as soon as possible.

Previously, Nissan had anticipated an annual profit of 300 billion yen ($1.9 billion).

In a bid to steer the company back on track, Nissan is appointing a Chief Performance Officer, who will begin next month and focus on driving the company’s restructuring efforts.

In light of the financial challenges, the company announced that no dividends will be paid out for the current fiscal year.

Despite the tough quarter, Uchida remained optimistic about Nissan’s ability to rebound, focusing on reshaping the company for long-term success.

This article contains additional reporting from The Associated Press