Toyota Motor Sales U.S.A. is shifting its sales and marketing headquarters from Los Angeles, California, to Plano, Texas, sources privy to the matter told Reuters. The transfer, which will occur in several phases within two years, will affect most of the Toyota's 5,000 sales and marketing management and employees will, Toyota insiders disclosed, adding that the move was announced to a small group of Toyota executives on Friday and will be make known to employees Monday.
Toyota had been expected to disclose details of an overhaul of its marketing operations, which should commence on May 1, Reuters reported in February, which also said that 80 employees would have to reapply for newly created positions or take a voluntary separation.
Toyota said in February that it is redefining employee roles and responsibilities to be more "integrated, flexible and efficient," noting that the changes were needed to meet its future business needs and support dealers and guests more effectively."
Jack Hollis, vice president of marketing for the Toyota division, said then that the carmaker’s marketing ranks may grow in the near future. Toyota that since the operating structure of the department would be overhauling, some current employees might not possess the skill sets suitable to the new organization.
Companies have found it increasingly expensive doing business in California, particularly in greater Los Angeles where they could dig in to a deep creative talent pool.
According to the Expatistan, the Los Angeles metropolitan area has been ranked ninth most-expensive in the US while the greater Dallas area is 19th. According to the Tax Foundation, California is the third worst state for complex, non-neutral taxes with comparatively high rates, behind New York and New Jersey. [source: Reuters]