Toyota Australia to close Sydney office with 300 jobs to go and keep Melbourne base

MORE than 300 white-collar workers could be out of a job after Toyota announced the closure of its Sydney office.

Stock images at the Toyota Australia Car Manufactoring Plant in Altona, Melbourne. Friday July 5, 2013. (AAP Image/Joe Castro) NO ARCHIVING

MORE than 300 white-collar workers at Toyota Australia’s Sydney head office in Caringbah will be out of a job or be forced to move to Melbourne once the Camry factory in Victoria closes in 2017.

Toyota Australia announced today it will consolidate its two head offices into one once the Altona car assembly line on the western outskirts of Melbourne is shut down.

Melbourne wins as Toyota consolidates its two head offices into one. Picture: AAP Image

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A statement from the company at 4:15pm on Wednesday said: “(Toyota) will consolidate its corporate functions to Melbourne, impacting its operations currently located in Sydney”.

Toyota Australia expects its workforce will be cut from 3900 people to about 1300. Included in the job losses are 2500 workers associated with manufacturing.

Toyota Australia expects its workforce will be cut from 3900 people to about 1300. Picture: AP Photo.

Toyota’s head office will continue to be based in Port Melbourne but the Altona manufacturing site will be levelled and rebuilt for new functions, most likely a parts warehouse and offices for staff training.

Toyota’s Headquarters on Bertie Street in Port Melbourne will remain. Picture: Eugene Hyland

Toyota Australia President Dave Buttner said the decisions were based on an “extensive evaluation process”.

“This year has been extremely tough for everyone at Toyota Australia,” Mr Buttner said in a media statement.

“We understand that it is a difficult time for many of our employees and we are committed to supporting them during the transition period.

“These changes will provide us with the best opportunity to have a strong and sustainable base for the next 50 years and beyond.”

The Toyota Camry being assembled at the Altona factory. Picture: Supplied.

The decision to close the Sydney office will improve business efficiency and reduce operating costs, the company said.

“The intention is that the relocation will be aligned to the end of manufacturing and we will encourage our Sydney-based employees to move to Melbourne,” said Mr Buttner.

The cuts come into effect when the Camry factory in Victoria closes in 2017.

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White-collar workers at Toyota regional offices that support dealer networks in New South Wales, Victoria and Tasmania, and national service functions will move from Port Melbourne to Altona.

White-collar workers at Toyota regional offices that support dealer networks in New South Wales, Victoria and Tasmania will move from Port Melbourne to Altona. Picture: AAP

“Our goal is to make these changes as seamless as possible,” Mr Buttner said.

Toyota Australia declined to answer any questions over the announcement and did not make executives available for interviews.

Toyota says the changes will provide it with a strong and sustainable base for the next 50 years and beyond. Picture: Eugene Hyland

Meanwhile, Holden’s total workforce today stands at 3400, but once the 1700 factory jobs go that will leave Holden overstaffed with approximately 1200 white-collar workers and its total could also fall below 500 once its factories close.

By comparison, Mazda, the third-biggest-selling car brand in Australia, has 250 office staff and sells about half as many cars as Toyota and almost as many as Holden.

Hyundai has less than 200 staff and sells almost as many vehicles as Mazda.

Holden says it will retain at least 140 designers who will work remotely on global General Motors vehicles, while Ford will employ about 1200 designers and engineers to help develop foreign Ford vehicles.

CAR INDUSTRY IN A NUTSHELL

TOYOTA

Toyota Australia total workforce: 3900

Factory: 2500

White-collar: 1400

Total number of cars sold in 2013: 215,000

Number of cars sold per head office employee in 2013: 153

Average number of cars sold per dealership in 2013: 1000

HOLDEN

Holden Australia total workforce: 3400

Factory: 1700

Engineering and design: 500

Head office staff: 1200

Total number of cars sold in 2013: 112,000

Number of cars sold per head office employee in 2013: 93

Average number of cars sold per dealership in 2013: 480

FORD

Ford Australia total workforce: 2450

Factory: 850

Engineering and design: 1200

Head office staff: 400

Total number of cars sold in 2013: 87,000

Number of cars sold per head office employee in 2013: 217.5

Average number of cars sold per dealership in 2013: 440

MAZDA

Mazda Australia head office workforce: 250

Factory: N/A (import only brand)

Head office workers: 250

Total number of cars sold in 2013: 103,000

Number of cars sold per head office employee in 2013: 410

Average number of cars sold per dealership in 2013: 825

HYUNDAI

Hyundai Australia head office workforce: 200

Factory: N/A (import only brand)

Head office workers: 200

Total number of cars sold in 2013: 97,000

Number of cars sold per head office employee in 2013: 485

Average number of cars sold per dealership in 2013: 605

This reporter is on Twitter: @JoshuaDowling