Toyota considers layoff of 1,000 full-time jobs

Toyota Motor Corp is considering cutting more than 1,000 full-time jobs in North America and the United Kingdom to cope with faltering global demand, a news report said on Friday.

The details of the job cuts will likely be finalised by the end of the month, said the Nikkei, Japan's top business daily, citing an unnamed senior company official. Japan's top automaker could slash more jobs in other regions if global auto sales continue to slump, the daily said.

Toyota spokesman Yuta Kaga declined to confirm the report, saying nothing had been decided.

Mike Goss, a spokesman for Toyota's North American manufacturing operations, said Toyota is considering "additional steps" after making several production adjustments in recent months, but no decisions have been finalised.

"Current business conditions are not forcing us to make involuntary reductions of Toyota team members," he said in a written statement.

Hit by the collapse in demand for cars, Toyota is expecting to incur its first operating loss in 70 years. The company on Tuesday tapped Akio Toyoda, grandson of the Japanese automaker's founder, as president, paying homage to its roots amid a deepening global downturn.

The US-educated Toyoda, 52, is the first founding family member to take the helm at the Japanese auto giant in 14 years.

Like other Japanese automakers, Toyota has been reducing temporary workers at its auto plants in Japan to curb production amid the global recession.

Harley said its fourth-quarter profit fell 58 per cent to $77.8 million, or 34 cents per share, for the quarter ended Dec. 31, compared with $186.1 million, or 78 cents per share, in the same quarter last year.

Revenue fell 6.8 per cent to $1.29 billion from $1.39 billion in the year-ago quarter.

The results fell short of Wall Street estimates. Analysts surveyed by Thomson Reuters expected 57 cents per share on sales of $1.29 billion, on average.

Harley said its financial-services division swung to an operating loss of $24.9 million in fourth quarter, hurt by write-downs totaling $63.5 million. The company said it is evaluating ``a range of options'' to provide funding for the ailing Harley-Davidson Financial Services. Many analysts have suggested the lending unit may have to be sold because it has been unable to unload its debt in the financial markets.

For the full year, Harley said its earnings fell 30 per cent to $654.7 million, or $2.79 per share, from $933.8 million, or $3.74 per share, in the same quarter last year. Sales fell 2.3 per cent to $5.59 billion from $5.73 billion in 2007.

Analysts expected $3.02 per share on sales of $5.61 billion in revenue for the year. Harley said it would not provide earnings guidance for 2009, but analysts call for $2.15 per share.

Agencies