By ZHANG Mingrui

Japanese automaker Toyota's joint venture, GAC Toyota, said on Tuesday that it has?terminated?the contracts of approximately 1,000 dispatch workers.

GAC Toyota said that it had engaged in negotiations with labor dispatch companies to ensure that the dismissed workers would receive timely and sufficient economic compensation. The company is collaborating with these labor dispatch firms to recommend reemployment opportunities for the affected employees.

According to open data, as of the end of 2022, GAC Toyota employed a total of 19,000 staff, including 1,800 dispatch workers.

In response to an inquiry from Jiemian News, GAC Toyota said that employee mobility is a standard organizational practice for job adjustments and optimizing personnel structures. The company emphasized that this decision is unrelated to the so-called decline in sales.

However, it is evident that sales have been declining. In June, GAC Toyota sold 87,200 units of vehicles,?an 18.5 percent increase compared to May, but still?a 13.5 percent decrease compared to June of the previous year.

Engulfed in a price war, GAC Toyota has taken the step of reducing the price of its EV model bZ4X by 15 percent, but this move has not had an impact on sales. During the first half of 2023, GAC Toyota sold a total of 452,800 units, a year-on-year drop of 9.48 percent.