Nissan could slash production at its two U.S. factories by about 25 percent, according to a Japanese media report.

The financially hobbled automaker could eliminate 1,500 to 2,000 jobs at its assembly plants in Canton, Miss., and Smyrna, Tenn., the Yomiuri Shimbun newspaper reported Jan. 24.

“Any production adjustments for U.S. manufacturing facilities have not been finalized nor announced,” Nissan spokesperson Brian Brockman told Automotive News.

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But U.S. production cuts are expected as the automaker works to rightsize its global business ahead of a potential merger with Honda Motor Co.

Nissan on Nov. 7 lowered its outlook for full-year operating income by 70 percent and announced plans to slash production capacity by 25 percent and cut ¥300 billion ($1.9 billion) in fixed costs. Globally, the automaker plans to ax 9,000 jobs.

In the key U.S. market, Nissan Motor Co.‘s 5.8 percent market share fell 2.1 percent from five years ago as the automaker struggled with oversupply and failed to capitalize on demand for hybrid vehicles.

Last year, Nissan cut about 500 jobs — or about 6 percent of the U.S. salaried workforce — via voluntary buyouts.

Faced with slowing demand for electric vehicles, the automaker has stalled a $500 million investment in Canton to build battery-powered models for the Nissan and Infiniti brands.

The company had planned to build five models in Mississippi starting as early as 2025. But it will instead take a wait-and-see approach and build four models starting in 2028.

In the past year, Nissan has trimmed production at both factories to manage swelling inventories, particularly of its top-selling Rogue crossover.