In the wake of its first quarter results, Nissan will cut 12,500 jobs across its global workforce, as well as a reduced model line-up.

The job cuts come as Nissan posted operating profit losses of 98.5% from FY18 Q1, to FY19 Q1

The cuts are said to be part of the company’s optimisation, which includes reducing production capacity by 10%, and reduce its product line-up by more than 10%, by the end of the fiscal 2022 year.

The company says it will focus on producing core global models and strategic regional models, which it believes will improve its competitiveness in the market.

The announcement comes as the company posted a negative shift in its finances compared to last year, with revenue down from £20bn (2,716.6bn Yen) in FY18 Q1 to £17.59bn (2,372.4bn Yen) in FY19 Q1 – a reduction of 12.7% – and consequently an operating profit drop of 98.5%, from £0.81bn (109.1bn Yen) to £11.9mn (1.6bn Yen) over the same period.

In the first quarter of fiscal year 2019, global total industry volume decreased 6.8% to 22.5 million units, while Nissan’s global unit sales decreased 6.0% to 1.23 million units. Nissan sales in Europe, including Russia, fell by 16.3% to 135,000 units. Market share in Europe was 2.5%. Unit sales in Russia decreased 21.7% to 18,000 units, equivalent to a market share of 4.1%. In other markets, including Asia and Oceania, Latin America, the Middle East and Africa, Nissan’s sales decreased 13.1% to 174,000 units.

The company’s pinning its hopes on electric and electrified vehicles (e-Power and battery-electric models) and technology including its Nissan Intelligent Mobility vision and the ongoing rollout and evolution of the ProPILOT driver assistance system. In addition, Nissan is expanding into new mobility business areas, including with its recent agreement made with Waymo around driverless mobility services in Japan and France, and public field tests of new mobility services with DeNA.