Facing a Loss, Toyota Offers Job Buyouts, Ends Bonuses
Toyota Motor Corp. is offering widespread job buyouts to its U.S. workers for the first time and cutting the workweek at some of its American plants by 10% to contend with falling sales.
The Japanese company also said it is eliminating bonuses for approximately 3,000 executives and salaried employees and cutting executive pay. In addition, the world’s biggest car maker said there will be no wage increases for the foreseeable future and spring bonuses paid to hourly workers will be reduced and later eliminated.
“We are taking every measure we can to protect employment,” said Mike Goss, a Toyota spokesman. The company is also adding several days in April when its North American plants will be closed as it seeks to reduce inventory levels by about half in the second quarter.
Toyota, which has a corporate philosophy of preserving employment, has avoided cutting jobs even in difficult times. Toyota has been paying two entire shifts of workers at two plants in the U.S. even with only one shift of production running. The company uses the time to try to hone the workers’ skills.
Toyota has been hit hard in the downturn, forecasting its first annual loss in 59 years. Last week, the company posted a net loss of 164.7 billion yen ($1.83 billion) for its fiscal third quarter ended Dec. 31, compared with a 458.67 billion yen profit a year earlier.