Toyota, the world’s biggest car maker, is to cut pay for executives in the US and further reduce production at some factories in the US, Canada and Mexico.
Toyota is introducing a range of measures – including pay cuts, voluntary redundancies, bonus cuts and shorter hours – to reduce costs.
The firm has already said it would post the first group-wide annual operating loss in its 70-year history.
Car companies are cutting back as a global slowdown reduces demand.
“We hope the new measures will help us adjust while protecting jobs,” said Jim Wiseman, vice president of Toyota Motor Engineering and Manufacturing late on Thursday.
Executives could see their take-home pay fall by 30%, including a 5% pay reduction and the elimination bonuses.
The company is to shut production for between two and eight days in April at some US plants. There will also be a shorter work week at some plants.
It will offer buyouts – voluntary redundancy for part-time workers – to 18,000 individuals, but expects few workers to take the offer up given the worsening job situation in the US.
The offer consists of 10 weeks pay, plus two weeks of pay for every year of service, plus $20,000 (£13,900).
The buyouts would not be offered to workers at two unionised plants, one in California and another in Mexico.
The car company has already cut production after sales fell 15% in 2008 in the US, its biggest market.
Source: BBC News