Toyota's Texas Move Could Reduce US White-Collar Workforce 70 Percent

Cameron Aubernon
by Cameron Aubernon

As Toyota prepares to consolidate the majority of its U.S. operations into its new headquarters in Plano, Texas, it may end up retaining as little as 30 percent of its engineering, sales, finance and corporate workforce after the move as uncertainty takes hold.

Automotive News reports the automaker is doing all it can to hold onto as many of its employees as possible with the move to Texas drawing closer with every passing day, going as far as to offer a generous package to help employees remain with the company:

  • Lump-sum payment based on job level to those who follow Toyota into Plano, then remain on-board for two years after
  • Rentention bonuses based on salary/tenure for those who stay until their departments move to Plano
  • Full reimbursement of relocation costs for those in supervisory or management roles and above
  • Real estate assistance for those selling their homes to buy one in Texas

Though it has budgeted its package for 50 percent of its U.S. workforce — the figure proposed to help make for a smooth transition while avoiding the continuity issues Nissan faced in a similar move in 2006 — a source inside Toyota stated the company would be lucky to retain 30 percent:

They would be happy to have 50 percent. It’s hard to tell [how many people will go] because nobody has been offered their jobs yet.

Toyota plans to offer new job classifications beginning in January, with the goal of realigning most of its employees under one set of guidelines. The classifications will also affect benefits and bonuses, along with how a given job is conducted and administered. Since the announcement of those changes this past summer, however, morale and productivity have fallen amid the long wait, per another inside source.

Around 4,050 employees from California, New York and Kentucky are expected to make the move to Plano by 2017.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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  • Turf3 Turf3 on Nov 19, 2014

    Well, if 70% of Toyota's California workforce decide to quit rather than move to Texas, that just makes it more economical for Texans: When replenishing your supply of Californian-Be-Gone(R) you can opt for the convenient pocket-size 5 ounce aerosol rather than having to get the 5 gallon drum with pump sprayer.

  • Landcrusher Landcrusher on Nov 19, 2014

    AGaPttH. This is getting out of hand. Zip Code - Okay, I see they used the available data, but that's still strange because the rates are still not set by zip code. And yes, over 8.5 is a lot different than the skewed average of 8.14 which is by zip code rather than county where most of the counties are likely less than 8 or I suspect 7.5. What's the rate in Cali? Where they ALSO HAVE A FRIGGING INCOME TAX? Pedantic - Yeah, I went that way instead of replying in kind with all sorts of hate. Forgive me, please. Sea of insects, et al. - Look. I have lived in Texas, near where you lived, for nearly 50 years and never have I witnessed any of the above. I have seen two venomous snakes outside the zoo in my life. One in Texas. I understand you had a bad time. Sorry. I prefer to worry about the problems created by people rather than nature because whining about the latter gets you no where. You moved, which was the proper response. Great. I moved from Cali. I can write a book on the bad experiences and guess what, THEY WERE MOSTLY FROM THE FRIGGING GOVERNMENT THERE. And, the reactions to that government which creates, among other things, a sea of old, polluting, unsafe cars driven by people trying to avoid the state imposed extra costs of a new one. Illegal Aliens - no one here is arguing about illegal aliens. Certainly not me, and I am certainly not trying to have anything both ways. The problems we have with illegal aliens are mostly the feds and some other government officials not following the laws and getting things done to reduce the illegal population. Especially the undesirable ones. Most of them are no trouble at all. My Dad once married one. I suspect you would have less an issue with them if less of your tax dollars was going to service them? Yes, Houston, where you have admitted you never lived, does not really have four seasons. Personally, I enjoyed the four seasons much more in CO and NY than in Cali where you really don't have four real seasons in most of it either. Get off that horse right now. It ain't taken you nowhere. It's just a bunch of hate.

  • Scott So they are losing hundreds of millions of dollars and they are promising us a “Cheaper EV”? I wonder how that will look and feel? They killed the Fiesta because they claimed that they couldn’t make a profit on them and when I bought the first one in late 2010 they couldn’t deliver the accessories I wanted for it! Then I bought a 2016 Fiesta ST and again couldn’t get the accessories for it I wanted. They claimed that the components were going to be available, eventually. So they lost on that one as well! I don’t care about what they say anymore. I’ve moved on to another brand.
  • Michael S6 CX 70 or 90 will not be on my buying list. Drove a rental base CX 90 and it was noisy and the engine noise was not pleasant. Ride was rough for a family SUV. Mazda has to understand that what is good for Miata isn't what we expect in semi luxury SUV. My wife's 2012 Buick Enclave has much better Ride and noise level albeit at worse gas millage. Had difficulty pairing my phone with Apple CarPlay
  • Michael S6 What is the metric conversion between one million barrels and the number of votes he expects to buy.
  • NJRide This could give Infiniti dealers an extra product maybe make it a sub brand
  • Lou_BC Mr. Posky outraged over an old guy passing er releasing some gas. How are those sedan sales going?