Lexus said on Wednesday it plans to sell off most of its North American operations and to cut the size of its sales and service teams by more than 90%.
The news comes on the heels of an embarrassing year for the automaker, as its auto sales fell by nearly a third in 2016 and the company’s profit fell in each of the first two quarters.
In 2018, the company has been forced to declare bankruptcy and is currently in the midst of a restructuring.
The company said in a statement that the sale of North America would allow it to “rebalance the company as it continues to address challenges in the U.K. and elsewhere.”
The automaker said it plans for the sale to begin in mid-October.
The restructuring would reduce the company to “barely” its pre-merger size and it would also reduce the number of sales employees in the company by 10%.
The automakers current plans are to eliminate about 80% by 2020 and the remainder by 2022, according to a company statement.
The company said it will also reduce by about 60% the number that are working in the service department by 2021 and by about 80%.
The restructuring, if approved, would be a significant blow to Lexus, which was a leader in North America until it was forced into bankruptcy in 2016.
The automarkets revenue has also suffered in the past two years.
It lost about $100 million last year.