Nissan has said it will lay off thousands of workers as it slashes global production to tackle a drop in sales in China and the US.

The Japanese car making giant says it will cut 9,000 jobs around the globe in a expense saving attempt that will view its global production reduced by a fifth.

Nissan did not immediately respond to a request from BBC information for details on where the job cuts will be made.

The corporation employs more than 6,000 people at its manufacturing plant in Sunderland, North East England.

The corporation also cut its operating profits forecasts for 2024 by 70%. It was the second period this year that the firm has lowered its outlook.

“These turnaround measures do not imply that the corporation is shrinking,” said Nissan’s chief executive Makoto Uchida.

“Nissan will restructure its business to become leaner and more resilient.”

The corporation said Mr Uchida’s monthly salary is being cut by half and that other elder executives will also receive pay cuts.

Nissan’s shares were market activity more than 6% lower on Friday morning in Tokyo.

Growing competition in China has led to falling prices, which has left many foreign car makers there struggling to compete with local firms like BYD.

China has become the globe’s biggest producer of electric vehicles as many Western rivals have failed to keep up.

“Nissan, like many Japanese car makers, has been very leisurely to the electrified vehicle event in China and this is reflected in their results,” said Mark Rainford, a China-based car industry commentator.

The firm is also struggling in the US, where worth rise and high earnings rates has hit sales of recent vehicles.

Lower demand has led car makers to cut prices, which has dented their profits.

In November last year, Nissan and its partners announced a £2bn ($2.6bn) schedule to construct three electric car models at its Sunderland factory.

The firm said it will construct electric Qashqai and Juke models at the plant alongside the next creation of the electric Leaf, which is already produced there.