Nissan Motor plans to shutter vehicle output at its main domestic plant and transfer operations to a factory in Kyushu as it seeks to reduce costs and production capacity in a broader effort to restructure.

The Oppama plant, which has been in operation since 1961 and employs roughly 2,400 workers, will cease production by March 2028, the carmaker said in a statement Tuesday.

The decision isn’t a surprise, given the facility had already been on a list of plants facing closure. But it’s a big move, and will have large implications for the local economy, as Nissan looks to raise funds and cut expenses to turn around its rapidly deteriorating financial and operational position.