Toyota reduces Japanese workforce by 800

Toyota reduces Japanese workforce by 800

Filed under: Hirings/Firings/Layoffs, Lexus, Toyota

Sinking sales at its Lexus luxury division have prompted Toyota to lay off some 800 workers at a Japanese plant where certain Lexus models are assembled. All 800 workers were temporary hires provided by an outside agency, and Toyota claims that at least 500 of the temps will be brought back at some point in the future. It seems that Toyota, along with other Japanese automakers, are increasingly using these temporary workers so that they can more easily adjust their payroll to changing market conditions. This tactic has drawn the ire of many in Japan, a country where loyalty is seen as extremely important. In total, Toyota's daily sales rate dropped by 18% last month while Lexus saw an even larger 25% fall, by far the largest of all the major Japanese brands.

[Source: The Detroit News]

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