As part of its broader campaign to reduce costs around the world and align production with the falling market demand, the UK division of Toyota Motors Corporation yesterday announced it will temporarily reduce working hours at its UK facilities. In addition, the Japanese automaker will also cut base salaries by 10 percent starting from April 1, 2009, with approximately 4,500 employees working at the Burnaston, Derby, and Deeside, Flintshire plants to be affected.
"We believe the measures we have announced give us a greater opportunity to maintain employment through this difficult period," said Toyota in a statement for the press, emphasizing the company's efforts to cope with the economic chaos.
This isn't the first cost-cutting move made by Toyota in the United Kingdom as it announced in mid-February that it plans to freeze salaries and suspend managed bonuses at all its plants. Toyota also established a new voluntary severance program for employees working at the two aforementioned facilities but officials figures are not available at this point.
Besides the United Kingdom, Toyota also struggles to save costs in the United States, as the company announced in early February. Reduced production, elimination of overtime, suspension of capital spending plus hiring freeze are only some of the many cost-cutting measures to be applied in this region.
“We’ve taken responsible, step-by-step actions to address this issue in recent months, and we hope the new measures will help us adjust while protecting jobs,” said Jim Wiseman, vice president of external affairs for Toyota Motor Engineering & Manufacturing North America (TEMA). “This philosophy of shared sacrifice is the best approach for us, and hopefully will make us a stronger company in the long term.”
"We believe the measures we have announced give us a greater opportunity to maintain employment through this difficult period," said Toyota in a statement for the press, emphasizing the company's efforts to cope with the economic chaos.
This isn't the first cost-cutting move made by Toyota in the United Kingdom as it announced in mid-February that it plans to freeze salaries and suspend managed bonuses at all its plants. Toyota also established a new voluntary severance program for employees working at the two aforementioned facilities but officials figures are not available at this point.
Besides the United Kingdom, Toyota also struggles to save costs in the United States, as the company announced in early February. Reduced production, elimination of overtime, suspension of capital spending plus hiring freeze are only some of the many cost-cutting measures to be applied in this region.
“We’ve taken responsible, step-by-step actions to address this issue in recent months, and we hope the new measures will help us adjust while protecting jobs,” said Jim Wiseman, vice president of external affairs for Toyota Motor Engineering & Manufacturing North America (TEMA). “This philosophy of shared sacrifice is the best approach for us, and hopefully will make us a stronger company in the long term.”