Sales crown doesn't ensure job security.
Toyota might have toppled GM as the global sales king, but the Japanese are not in the mood for celebrating. According to the Japanese newspaper Nikkei, Toyota will probably lay off more than 1,000 employees in Great Britain and North America, as sales continue to tumble in those two key markets.
Although Toyota Motor Corp has overtaken GM as the world’s leading automaker, the Japanese giant has to focus on the problems of the moment. Though it originally seemed to sidestep the collapsing American auto market, marketing czar Don Esmond recently told TheDetroitBureau.com, “We are not immune.”
And so, with sales declines pushing beyond 30 percent, in recent months, Toyota has no choice but to cut. The automaker has traditionally tried to find ways to keep its workforce busy during its few, brief production “adjustments.” But this time, the numbers may need to be permanently adjusted, and layoffs may be required, according to Nikkei and other sources.
The Japanese newspaper suggested that Toyota would make a decision soon about the workforce to be laid off, based on information from a source within the company.
Since Toyota is temporarily closing plants, its suppliers, both in North America and in Japan, are facing the impact, as well.