Toyota offering buyout options for US employees
Toyota was the only automaker in the US market in 2010 to show a decline in sales compared to 2009, caused mainly by the severe impact to their reputation from a massive number of recalls in the past two years. On top of the recalls themselves, consumer confidence for the once-highly regarded Japanese automaker has plummeted as more and more information about their lackluster recall practices have surfaced.
Toyota’s statement points out that the buyout is purely voluntary but according to Automotive News, this buyout package applies to roughly 629 of their 6,100 employees at the company’s North American headquarters. The divisions included in this buyout option include Toyota and Lexus automotive operations, customer service and sales administration and if the majority of those offered the buyout accept the deal, Toyota could cut their HQ staff by roughly 10%.
The severance package begins with a $20,000 one-time payment for “transition assistance payment” and tacks on two weeks’ worth of pay for each year worked and a lump sum, universal payment of 10 weeks’ pay. So, for someone who makes $1,000 a week (this dollar value is purely used for a nice, round example figure) and has worked for Toyota for 5 years, they will receive 20 weeks of pay ($20,000) plus the additional $20,000 assistance payment. This means that John Q Toyotaworker, who makes around $50,000 a year to work at the company’s US headquarters, can agree to vacate his job for a lump sum payment of roughly $40,000.
Toyota claims that they expect to see sales numbers bloom in 2011 but with the continued recall issues, the company has a great deal to work against in the US market.
Source: Automotive News
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