Toyota wants to replace older workers in the US with younger ones and is seeking voluntary retirement of 2,000 employees, about 10% of its total headcount in the country.
The carmaker is offering incentives to manufacturing employees who have worked for the company for over 22 years. Most of those eligible for the programme are in the automaker's factory in Kentucky which began production - of the Camry - in 1988.
About 20% to 35% of those eligible for early retirement incentives are expected to apply. Toyota said it would offset the departures with new recruits keeping the total workforce in the US almost unchanged.