Nissan has announced it is cutting 365 jobs at its factory on Wearside.
The company says it is because sales of two cars, the Note and the Juke, have declined this year. It means 24-hour production of those models will cease.
Today's announcement brings to an end a period of continued recruitment. Nissan has taken on an extra two thousands workers in the last two years.
The Deputy Prime Minister Nick Clegg has announced a multi-million pound investment, to help create thousands of manufacturing jobs and improve transport links on Wearside.
The Sunderland City Deal includes the development of a new International Advanced Manufacturing Park next to the Nissan site.
There will be £80m of government funding to build the long-awaited new bridge over the River Wear.
A Central Business District will also be developed on the site of the former Vaux Brewery in the city centre.
Thousands of manufacturing jobs are coming to Sunderland and South Tyneside after the government announced a mult-million pound investment in manufacturing connected with the Nissan car plant. £80million will also be spent on a new bridge over the River Wear.
A father and son from Pennywell have been jailed for stealing components from car giant Nissan's manufacturing plant in Washington and putting them on e-bay.
235 sat-navs - worth over £600,000 - went missing over a three month period at the end of 2011, as well as £250,000 worth of sat-navs being taken in February 2012.
Police launched an undercover investigation which led them to Anthony and Stephen Ganley at Tony's Car Radios in Sunderland, who they found had been selling stolen sat navs through the shop and online.
The two men were sentenced, along with two others, yesterday at Newcastle Crown Court.
Anthony Ganley was jailed for three years after he admitted conspiracy to steal and conspiracy to handle stolen goods, and Stephen Ganley was jailed for five years.
Productivity at the Nissan car factory on Wearside fell last year by 1.7%.
The figures come a day after the new Qashqai started coming off the production line.
The introduction of new models like this has led to a temporary downturn, according to The Society of Motor Manufacturers.
The workforce at Nissan's Sunderland plant is now at 7,000 employees. There will be three shifts working 24 hours a day for three years to keep up with demand. 113 cars are made at the plant every hour and it's in the record books as the biggest car plant of all time in UK.
Nissan has unveiled the new Qashqai model. The company says it is the best car to ever be made at the plant in Sunderland.
Nissan will, any moment, unveil the model which has helped create 500 jobs at the Japanese car giant's UK plant in the coming months.
The second generation Qashqai will be built in Sunderland, where the workforce is set to increase to over 7,000 for the first time.
Business Secretary Vince Cable has commented on the success of Nissan's Sunderland plant saying he welcomes their contribution to the economy.
"The British car industry is thriving - car exports last year brought in #30 billion for our economy - and I welcome Nissan's contribution in delivering this success.
"We want to build on this. That is why we are working together with business to give companies like Nissan the confidence to invest, delivering skilled jobs, driving growth and building a stronger economy."