Erlanger, Kentucky – Toyota has announced it will further reduce production at its North American manufacturing plants, in an effort to protect jobs during the sales slowdown.
“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. “This philosophy of shared sacrifice is the best approach for us, and hopefully will make us a stronger company in the long term.”
Previously, Toyota scheduled non-production days as needed, established a hiring freeze, eliminated overtime, and suspended capital spending.
Under the newest production cuts, the company will schedule additional non-production days in April, eliminate executive and salaried bonuses, exact executive pay cuts, reduce production employee bonuses, enact a voluntary exit program for employees who wish to leave, and eliminate wage increases for the foreseeable future. The company said there is also a strong possibility it will implement reduced work/pay weeks, known as “work sharing”, with employees at affected plants working and being paid for 72 hours instead of 80 during the two-week pay period.