Toyota Motor Corporation said that it will cut pay and production by 10% at its British plants, for one year starting from April 1st 2009, to cut costs while avoiding layoffs.
Toyota in a statement said that "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%. This work share arrangement will take effect from April 1st 2009 and will be in place for one year. During this time we will continue to monitor the market and company situation closely." Toyota has already laid off 200 temporary employees in Britain. Toyota has 3,900 employees at its main production site in Burnaston, near Derby in central England, and 570 at its engine plant in north Wales.