A method for controlling a powertrain includes, in response to an output torque request that includes deceleration, operating an internal combustion engine in a fuel cutoff state and in a cylinder deactivation state, controlling a clutch of a torque converter in an activated state, and operating an electric machine in a regenerative braking state. A state of the powertrain related to engine speed is monitored. The internal combustion engine is commanded to transition from the cylinder deactivation state to an all-cylinder state and the electric machine operates in the regenerative braking state including ramping down magnitude of regenerative braking torque when the engine speed is less than a first threshold speed. The torque converter clutch is commanded to a released state when the engine speed is less than a second threshold speed, with the first threshold speed being greater than the second threshold speed.