Toyota to Cut Managers' Summer Bonuses

Economy

Nagoya, June 13 (Jiji Press)--Toyota Motor Corp. <7203> plans to cut summer bonuses for some 9,800 workers in managerial positions by about 4-5 pct on average, an unusual move by a financially strong company, informed sources said Thursday.

The bonus cut is intended to have managerial workers share a sense of urgency to respond to increasing competition in new technologies including automated driving, the sources said.

In the year ended in March, Toyota became the first Japanese company to report annual sales of 30 trillion yen or more.

Earlier this year, Toyota and its labor union reached an agreement on summer bonuses. The summer bonus cut for managerial workers may affect labor-management talks on winter bonuses.

Executive bonuses will rise in total, driven by increased payments to foreign executives. Bonuses for Japanese executives are believed to be modest by comparison.

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Jiji Press