Toyota cuts UK wages and production by 10%

Toyota announced today that it will be cutting pay and production by 10 percent at its British factories starting April 1. The move comes as Toyota looks for different ways to cut costs and avoid layoffs. Toyota has already laid off 200 temporary workers in Britain.

“Following extensive consultation with our employee representatives, and with input from all employees, it has been agreed that the best way to secure long term employment is to temporarily reduce working hours and base pay by 10 percent,” Toyota said.

Toyota currently employs 3,900 at its main production site in Centeral England and another 570 at its engine plant in north Wales.

Of course this cut is less aggressive than the one Toyota recently announced for the United States. Along with production cuts, Toyota is cutting executive compensation by 30 percent, 5 percent of which will be a salary cut. The company will also cut salary increases for the “foreseeable future.”

Source: Detroit News