The worsening economic condition has prompted Japanese automaker, Toyota, to take new drastic steps in order to stay afloat and return back to profitability.
In the latest move, the company will slash the salary and compensation for its US workers by some 30%, which also include elimination of year-end bonuses.
On top of that, it is offering buyouts for more than 15,000 of its workers across North America. The buyout package comes in the form of $20,000 cash disbursement, 10 weeks of pay, and additional of two-week pay for every year of service rendered.
More than 5,000 Toyota workers in Japan, who are now serving the company under contractual terms, will be laid off. Japanese believe in the philosophy of ‘employment for life’, so this layoff will not make Toyota look good in the eyes of the country’s citizens and the government, but the company is not alone. Another automaker, Nisson Co., recently announced its decision to cut more than 20,000 jobs worldwide, including those in Japan.
Last month, Toyota officially overtook General Motors as the world’s largest vehicle maker by sales. For more than 60 years, the company has been recording positive net growth but it is anticipated to fall into its first annual net loss this year.