Toyota Australia is to cut 100 jobs at its manufacturing operations in Melbourne.
The car maker says it will seek voluntary redundancies as it moves to reduce production from 470 to 430 vehicles a day from December.
Executive vice president Dave Buttner says the decision has been necessary because of a fall in exports to the Middle East.
He says the decision also comes as Toyota seeks to cut the cost of building each car in Australia by $3800 by 2018 in order for its local manufacturing operations to remain viable.
"We've got to continue to work hard to reduce our overall cost base," Mr Buttner said on Tuesday.
"That's the key to us remaining sustainable."