Nissan will soon cut output at the factory building the Rogue and Altima. The Japanese automaker is also preparing to offer buyouts for more than 1,500 employees and decrease production at one of its engine plants in response to reduced demand. These moves come shortly after Honda insinuated that Nissan needs to get its act together if it wants the planned 2026 merger to go ahead.

Starting in April, the second shift at the Nissan Rogue and Altima assembly lines in Smyrna, Tennessee, and Canton, Mississippi, will be scrapped. Nissan hasn’t specified how much this change will impact its total output but analysts suggest it could lead to 63,000 fewer cars made this year. That would equate to roughly 12% of total Nissan production in the US.

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Nissan has also confirmed that it will reduce output at its engine plant in Decherd, Tennessee. David Johnson, the head of manufacturing and supply chain management at Nissan North America, described the changes as a “momentary reaction” to demand.

“We see the market being very challenging for certain product lines,” he told Auto News. “Plant utilization rates are not so favorable right now, especially when you look at the two-shift pattern.”

Nissan failed to mention exactly when the plants will return to two shifts. However, the Smyrna site will start to build a plug-in hybrid Rogue in 2027, and this will require a second shift. The Canton site will also go back to a two-shift schedule and handle the production of an EV, likely arriving in 2028.

In addition to these production alterations, Nissan said it’ll start offering voluntary severance packages to hourly workers. While it hasn’t specified how many jobs it hopes to axe with this measure, one unnamed source suggests it’s looking to reduce headcount by as much as 1,500.

“It’s a great opportunity for those that want to do something with their career, or just go into retirement,” Johnson said of the cuts. “It’s challenging, but it’s the thing we have to do to be able to make sure that we’re generating the right type of revenues for the company so that we can invest in the future.”