With disappointing financial results in the first half of fiscal year 2024, Nissan Motor Company intends to do whatever it can to turn the business around. “Facing a severe situation,” the automaker announced Thursday a plan to drastically reduce costs, which includes cutting 9,000 jobs.

According to Nissan, fixed costs amounting to 300 billion yen (over $1.9 billion) will be eliminated. With that, about 100 billion yen ($649 million) in variable expenses will also be cut. Vehicle production worldwide will drop by 20%.

“The company is implementing various measures to lower selling, general, and administrative expenses, decrease the cost of goods sold, rationalize its asset portfolio, and prioritize capital expenditures and investments in research and development,” said Nissan, per FOX Business.

Nissan is implementing these measures to increase efficiency and cut redundancies, making it easier to respond to market changes. Increasing competitiveness is crucial to its future success, and a better-organized team is key to the “successful implementation of our plans,” Nissan added.

Nissan CEO Makoto Uchida is taking the situation seriously and has volunteered to reduce his pay by 50%. He has also asked other company executives to do the same.

Nissan Earnings

In the last few financial reports, Nissan saw numbers drop in all categories. The Japanese automaker lost 9.3 billion yen ($60 million) in the quarter ending Sept. 30. Sales in the same period fell 2.9 trillion yen ($19 billion). For the first half of the year, revenue fell 1% to 5.98 trillion yen ($39 billion).

Nissan has also revised its sales outlook for the fiscal year, which ends in March 2025. The company predicts revenue to hit around 12.7 trillion yen ($82 billion) versus an earlier expectation of 14 trillion yen ($91 billion).

Globally, the carmaker projects sales of about 3.4 million vehicles, lower than the 3.65 million forecasted previously. In the U.S., Nissan has been struggling with low demand as Ford, Toyota, and Tesla have been more successful with car buyers.

Facing increased competition and higher costs, Nissan is not the only carmaker looking to get leaner. Last month, Volkswagen announced an unprecedented move to close several plants in its home country of Germany, which includes thousands of workers losing their jobs.