Nissan Motor Company announced plans Thursday to cut 12,500 jobs, about 9% of its workforce, amid dramatically declining profits.

The Japanese automaker also announced it will cut global production capacity and model lineups at least 10% by the end of fiscal year 2022, the Associated Press reported.

“Our situation right now is extremely severe,” Nissan CEO Hiroto Saikawa told reporters at company’s Yokohama, Japan headquarters. “Our stance to lead the industry is unchanging.”

The cuts will be mostly from auto plant workers, a company presentation confirmed. 6,400 jobs will be eliminated in eight unnamed locations by the end of the year, AP reported. Regional breakdowns were not provided. Another 6,100 jobs will be eliminated by fiscal year-end 2022.

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Second-quarter results showed profits fell drastically to 6.4 billion yen ($59 million), from 115.8 billion yen for the same quarter last year. For the fiscal year, which ended in March, profits fell by more than half of what Nissan earned last year, coming in at 319.1 billion yen, according to AP.

The Japanese automaker said the profits are the worst in more than a decade.

Nissan has had brand image problems since the arrest of former Chairman Carlos Ghosn, who is awaiting trial on financial misconduct charges.

Saikawa noted that the company will attempt to re-ignite growth through upcoming models showcasing technology like artificial intelligence.

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