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Toyota shutdown sees two-thirds of local workforce axed

08 December, 2014

Toyota Australia's plan to end local manufacturing operations by 2017 will see the axing of two-thirds of its workforce – from 3900 to around 1300, according to a statement released by the company.

Toyota initially announced its intention to end local production in February, the last of three automakers – including Ford and Holden – to do so.

Consolidating operations, it will have its main headquarters in Port Melbourne, whilst its Altona factory will be used for different purposes and Sydney operations will be shut down.

Toyota's four major parts centres will undergo "major reform to improve global competitiveness".

"A difficult time"

Toyota Australia's president Dave Buttner said the recent announcements came in a year that had been "extremely tough" for the company.

"We understand that it is a difficult time for many of our employees and we are committed to supporting them during the transition period," he said.

Buttner said he hoped the changes would help the company's Australian operations remain sustainable for the next 50 years.

"The decision to consolidate our corporate operations to Melbourne supports our long-term vision and will assist us in improving business efficiency, increase collaboration and reduce operating costs," he said.

"The intention is that the relocation will be aligned to the end of manufacturing and we will encourage our Sydney-based employees to move to Melbourne."

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