Toyota looking to shed payroll
Toyota is making a drastic move to cut payroll by asking many of its higher-level employees to leave the company, The Wall Street Journal reports. In fact, the company is offering incentives for many of its white collar employees to exit after the car maker lost its U.S. market share for the first time in 12 years.
The Journal reports that Toyota's executives offered the incentives to 629 managers in its automotive operations and customer-service groups. The move may be a sign of weakness for the car maker, considering this is at least the second time it has asked employees to leave. The decision stands as a stark difference compared to Toyota's competitors, Ford and General Motors, which have increased their payroll over the last year.
"This voluntary program is part of an ongoing process of evaluating our operations and aligning them with our future growth. It will allow for further restructuring and enable us to expand areas of responsibility and increase efficiency," the company said in a statement.
Employees who leave are eligible for $20,000 severance packages in addition to two weeks of pay for each year they worked at the company, plus 10 weeks worth of salary. Toyota currently boasts approximately 320,000 employees worldwide.
The Journal reports that Toyota's executives offered the incentives to 629 managers in its automotive operations and customer-service groups. The move may be a sign of weakness for the car maker, considering this is at least the second time it has asked employees to leave. The decision stands as a stark difference compared to Toyota's competitors, Ford and General Motors, which have increased their payroll over the last year.
"This voluntary program is part of an ongoing process of evaluating our operations and aligning them with our future growth. It will allow for further restructuring and enable us to expand areas of responsibility and increase efficiency," the company said in a statement.
Employees who leave are eligible for $20,000 severance packages in addition to two weeks of pay for each year they worked at the company, plus 10 weeks worth of salary. Toyota currently boasts approximately 320,000 employees worldwide.
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