Japan’s three biggest automakers are poised to add almost 32,000 people to the unprecedented ranks of North American workers seeking unemployment benefits.
While Toyota Motor Corp. isn’t furloughing any of its direct employees in the U.S., Canada or Mexico, the carmaker said Wednesday that it will no longer pay the roughly 5,000 people that temp agencies employ to help staff its idled plants in the region. The company will continue to provide benefits for the time being.
Toyota’s North American unit announced the cost-cutting move a day after Japanese peers Honda Motor Co. and Nissan Motor Co. said they would temporarily stop paying all staff at their idled U.S. plants and ask them to file for states’ unemployment benefits. Honda’s decision affects 16,900 employees, while Nissan said it will furlough roughly 10,000 workers.