A production unit of Toyota Motor Corp. said Tuesday it laid off about 800 contract workers in June and August to reduce production of vehicles bound for North America, as car sales in the U.S. continue to slump. However, a spokesman at Toyota Motor Kyushu Inc. said it will rehire 500 contract staff in the autumn or afterward to prepare to increase output, indicating it expects the production adjustment to end in several months.
The production unit, based in Fukuoka prefecture in southern Japan, canceled contracts with about 350 production workers in early June and with approximately 450 more on Aug. 3. The combined 800 staff account for about 10% of Toyota Motor Kyushu's overall workforce. It is the first time the unit has terminated contracts before they expire, the spokesman said.