How Toyota Copes With a Recession

Even Toyota is not immune from a worldwide recession. The company is losing money and cutting production. It is reacting in a variety of ways.

But not with layoffs.

Yes, Toyota would like to be paying fewer workers, and for the first time is offering buyouts to American workers. But the buyouts are voluntary, and according to an article in Forbes, Toyota admits it doesn’t expect many people to accept.

“If no one decides to leave, that is fine by Toyota,” said Toyota spokesman Paul Nolasco, who added that Toyota has no target for how many employees will exit.

That doesn’t mean Toyota workers are feeling no pain. The company is cutting hours and bonuses, so lots of its employees will be making less money.

But they still have jobs.

It all goes back to the lean principle of respect for people, and the recognition that trained, experienced workers are an asset to be valued for their minds, not just their ability to assemble cars.

I hope other companies can learn from this example.