Nissan has confirmed it plans to cut “roughly 12 500” jobs as it reduces its global production capacity after its quarterly operating profit plunged 98,5 percent.

The Japanese firm announced its financial results for the three-month period ending June 30 in a press statement.

It said it generated an operating profit of 1,6-billion yen (down nearly 99 percent, year on year) on net revenues of 2,37-trillion yen, equivalent to an operating margin of 0,1 percent. Quarterly net income, meanwhile, fell by 94,5 percent to 6,4-billion yen.

The company said it was “implementing strategic reforms in order to build an operational base that will ensure consistent and sustainable profitability over the medium term”.

It added it was “moving quickly to optimise cost structures and manufacturing operations, while also enhancing brand value, steadily refreshing its line-up and achieving consistent growth globally, including in the US”.

“To improve its overall utilisation rate, Nissan will reduce its global production capacity by 10 percent by the end of fiscal year 2022. In line with production optimisations, the company will reduce headcount by roughly 12 500,” the statement said.

“Furthermore, the company will reduce the size of its product line-up by at least 10 percent by the end of fiscal year 2022 in order to improve product competitiveness by focusing investment on global core models and strategic regional models.”