Bangkok (VNA) – Japanese carmaker Toyota Motors Thailand has announced a cut of 800 contract workers of the total 16,477 employees in the firm’s manufacturing facilities in Thailand.

Those made redundant will be compensated in accordance with labour laws which includes a 16-day bonus and a 30-day extra payment.

The redundancy programme, which took effect from July 13, is the first one in Toyota Thailand’s operation over the past 50 years.

Earlier, those seeking redundancy were allowed to register for the scheme until July 9. The firm also announced that it will re-recruit employees for the vacancies within one year or until the domestic automobile market recovers.

Meanwhile, other carmakers in Thailand held that the country’s automobile market is still promising and Toyota Thailand’s decision does not affect workers in the industry, as the number of redundancies is small compared to the 60,000-100,000 employees working in the sector in Thailand.

Currently, the yearly production output of the automobile sector in Thailand is 2.85 million vehicles, accounting for only 70 percent of the industry’s maximum capacity. Meanwhile, production of Toyota Thailand is only 60-70 percent of its total capacity.-VNA