Cutbacks Announced At Toyota

It's another sign of the times. Thursday afternoon, Toyota announced it will cut bonuses and pay raises in an effort to save money during these tough times.

Like most automakers, sales at Toyota have been way down in the past few months, so the company is looking to cut back on production.

Employees at the plant in Georgetown met with company officials today to learn how the cutbacks would affect them.

Toyota says it is trying to protect jobs during this trying time.

"We've taken responsible, step-by-step actions to address this issue in recent months, and we hope the new measures will help us adjust while protecting jobs," said Jim Wiseman, vice president of external affairs for Toyota Motor Engineering & Manufacturing North America (TEMA).

Previously, the company scheduled non-production days, put a hiring freeze in place, stopped overtime and suspended capitol spending.

In addition to those measures, Toyota is now adding even more non-production days, eliminating bonuses and cutting pay for executives, reducing bonuses for team members and eliminating pay raises for the time being.

Toyota is also offering a voluntary exit program to team members.

These cuts are not isolated to Georgetown. All Toyota plants in North America received similar news on Thursday.

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