Japanese auto major Toyota Motor Corp. (TM) Wednesday said its production and sales subsidiary in Australia, Toyota Motor Corp. Australia Ltd. or TMCA, would consolidate its corporate functions in Melbourne, that will lead to closure of operations in Sydney. Toyota Motor noted that TMCA's new business structure will be from 2018 onward.
According to reports, the company will lay off 2,600 workers in Australia, by bringing down the employee number to 1,300 from the current 3,900.
According to the firm, most of the Altona Plant will cease manufacturing by the end of 2017, and will be re-established as training and product development facilities.
The company said its decision to stop manufacturing and continue as a national sales and distribution company from 2018 was taken from a long-term point-of-view with the customer firmly in mind, to maintain a sustainable business well into the future.
Port Melbourne, Victoria-headquartered TMCA's production is based in Altona Plant. Established in March 1959, it has about 3,900 employees as of December 3, 2014.
TMCA president Dave Buttner said, "We understand that it is a difficult time for many of our employees and we are committed to supporting them during the transition period."
The implementation of the changes will provide the company with the best opportunity to have a strong and sustainable base for the next fifty years and beyond, it stated.
TM closed Tuesday's trading at $126.57, up 1.3 percent.
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