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Sunday, February 01, 2009

Toyota Cutting Executive Salaries due to Sales Drop

Japanese newspaper Nikkei has recently reported that Toyota, the largest automaker in the country, is going to cut salary for its executives in order to come to terms with its prediction of first operational loss in 71 years due to ongoing economic recession in world market- leading to slower demand across the world. The situation has been aggravated because of surging Japanese Yen against foreign currencies.

Well, Nikkei did not indicate any source of the news of cutting salaries for the company executives in Toyota Motor Corp. The report even did not say when and to what extent the salary for the executives would be cut. However, you can not simply rule out the report yet because the company is going through a tough time both domestically as well as internationally at this moment. They are cutting production throughout the world in order to prevent inventory building.

Related article:

Bloomberg

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