Toyota will stop making vehicles at its Altona manufacturing plant in Melbourne on October 3, ending the jobs of 2600 people.
The closure of its manufacturing operations, and consolidation of its corporate offices in Melbourne, will cut the number of staff from 3900 to about 1300, Toyota said.
The Altona plant will stop building Aurion vehicles in August, Camry Hybrid vehicles in September and Camry Petrol vehicles in October.
The company is committed to supporting its workers through the transition period and beyond, Toyota Australia President Dave Buttner said.
Australian Manufacturing Worker's Union secretary, Dave Smith, said the plant's workers now faced an uncertain future and blamed the Coalition government's policies for Toyota's decision.
"Workers in the vehicle industry will never forget the day that Joe Hockey challenged the car industry to go offshore," he said.
"Joe Hockey might be gone, but Malcolm Turnbull has continued his legacy of deserting vehicle workers.
"It’s time for Turnbull to deliver on his jobs and growth mantra and tell us his plan to transition these workers into skilled jobs."
Labor employment spokesman Brendan O'Connor said it was a "dark day" for the country's automotive jobs and called on the government to support workers and Australian manufacturing.
Workers have expressed mixed reactions to the news.
While they said they were upset at the closure, they were also relieved at having a firm date of closure so they could prepare for their futures, according to ABC News.
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