The Japanese automaker said about 8,700 middle and senior managers would be affected. Their December bonuses – standard compensation for most Japanese white-collar workers – will be about 10 per cent lower this year, a fall of between Y100,000 and Y300,000 ($1,067-$3,200).
A lean operation even in flush times, Toyota has been looking for ways to cut expenses further amid sharp falls in demand in its major markets. It suffered a 69 per cent decline in net profits for the quarter to September and has warned that it will barely make money in the second half of its financial year. Although Japan's carmakers remain profitable, in contrast to their rivals in Detroit, they have had to deal with the extra burden of a surging yen, which has sapped the value of foreign earnings.