Nissan Motor shares fell by 6% in Tokyo on Friday following an announcement that the company would eliminate 9,000 jobs and reduce its production by 20% as part of a restructuring plan.

The automaker also downgraded its operating profit forecast by 70% due to struggles in the Chinese and U.S. markets, where demand for hybrids and affordable electric vehicles has intensified.

CEO Makoto Uchida acknowledged that Nissan underestimated the rising demand for hybrids in the U.S., contributing to weaker-than-expected sales of revamped core models.

The company’s efforts to revitalize its business, including restructuring plans to cut costs by 400 billion yen ($2.61 billion), come amid increasing competition from local Chinese electric vehicle makers.