Japan's Nissan Motor is offering buyouts to workers and cutting back shifts at three U.S. factories, a company spokesperson said on Thursday, as the automaker pushes to slash $2.6 billion in costs globally.

Nissan Motor is slashing production at its U.S. plants and offering buyouts to factory workers there as part of the Japanese automaker’s urgent efforts to return to profitability

Japanese automaker Nissan is slimming down its production in the U.S. and offering buyouts to workers in a push to cut jobs after reporting losses during the last quarter. Nissan is offering voluntary separation packages to employees at assembly plants in Smyrna,

Nissan Motor Co. is eliminating a work shift at two US vehicle assembly plants and trimming its hourly staff via buyouts, a downsizing to align its output with lower sales volumes as it mulls a possible sale to Honda Motor Co.

After announcing a merger last month with rival automaker, Honda, Nissan is now saying it will reduce production and cut thousands of jobs to its plants across the globe. This includes both production sites in Tennessee.

Nissan will operate a single shift on one production line at each of its two U.S. facilities, located in Smyrna and Canton, Mississippi, according to Bloomberg. It expects to go back to a two-shift schedule when it introduces new vehicle models in 2027 and 2028. The production cuts impact the Rogue in Smyrna and the Altima in Canton.

Nissan Motor (OTCPK:NSANY) announced production and shift cuts in the U.S. as part of its strategy to push back costs amid sluggish sales. The Yokohama-based automaker is offering buyouts to workers.