Nissan Motor will cut 9,000 jobs and 20% of its global manufacturing capacity, the automaker said Thursday, as it scrambles to reduce costs by $2.6 billion in the current fiscal year amid a sales slump in China and the U.

The Japanese carmaker is embarking on a turnaround plan that includes cutting global production capacity by a fifth.

The Japanese automaker is carving deep cuts in its global operations as it struggles with a steep drop in sales.