Toyota announced it is making early retirement offers to about 2,000 of its veteran U.S. employees.
Most of them work at Toyota’s Georgetown, Kentucky plant. Toyota wants to manage the retirement of the workers who will have at least 22 years with the company as of March 13 2013. About 1,600 of those 2,000 employees work at the Georgetown plant, where about 6,600 workers build the Camry, Venza and Avalon models, according to an statement on the company’s website.
“As we look at the next two years, a large contingent of those team members in the U.S., particularly in Kentucky, will be thinking about exiting the company due to 25 years of service. This program offers a strategic approach to managing for this condition,” Toyota said in a statement to employees on November 29.
Toyota has built plants in North America to increase its market share in the region, with the Kentucky plant (the company’s first on the continent) beginning production in 1988.
Workers eligible for the retirement program will receive two weeks of pay for each year with the company (25 years maximum), in addition to eight weeks’ pay. Workers who accept the incentive package will retire in staggered intervals starting in February, Toyota said.