Nissan Motors of Japan posted a big drop in profits for the first quarter and announced it will lay off 12,500 jobs around the world.

The automaker will cut the workers over a four year period.  

Nissan's reputation took a hit with the corruption charges filed against its former chairman and CEO, Carlos Ghosn, who was forced to stand down  and was eventually arrested by Tokyo cops.

The company said that operating profit was nearly wiped out, tumbling to 1.6 billion yen ($14.8 million) in fiscal first quarter that ended on 30 June.  Operating profit margin shriveled to a 0.1 percent, compared with 4.0 percent a year earlier.

"The results were really more negative than we expected," said CEO Hiroto Saikawa at a briefing here at Nissan’s global headquarters.  "We thought the situation would be challenging.  But the actual retail performance was slightly under what we expected.  We have to admit that."

The company says it will cut global production by ten percent, and reduce the  plans a 10 percent cut in both global production capacity and the size of its product lune-up.