Around 1,000 employees of Nissan Motor Co in Thailand are expected to be let go or relocated by fall 2025, with the Japanese automaker grappling with a downturn in profits, an industrial source said Friday.

The move is in line with a pledge that Japan's third-largest car company has made to cut its global workforce by about 7 percent, or 9,000 employees, by fiscal 2026 ending in March 2027, the source said.

Although Japanese carmakers have long dominated the market in Thailand, they have been facing a decline in sales as electric vehicles made by Chinese manufacturers gain a stronger foothold.

Nissan, previously led by Carlos Ghosn who was sent by France's car producer Renault, has experienced a steep slide in sales in Thailand in recent years, reporting a 29.7 percent drop from a year earlier to 14,224 vehicles in fiscal 2023.

In Thailand, Nissan's factories have produced four models for the domestic market and for export, such as its Kicks compact sports utility vehicle. The Japanese carmaker has been reviewing its operations in recent years.

On Thursday, Nissan said it projects some 6 percent, or around 1,000, of its employees in the United States will retire early by the end of the year.