(Yicai Global) July 24 -- Faced with fierce competition, GAC Toyota must make strategic adjustments, Toyota Motor’s largest joint venture in China reportedly said today in response to rumors about large-scale layoffs.

A statement by GAC Toyota said the JV will adjust its headcount based on market conditions and its development needs, according to a report released this afternoon by the State Administration for Market Regulation’s China Quality Report.

GAC Toyota, which had 19,000 employees, has let go more than 1,000 this time, and the exact number and compensation standard have not yet been determined, according to a photo circulating on social media.

Some netizens disclosed that the Guangzhou-based carmaker has notified staff to go through the resignation procedures and offered financial compensation, but these reports have not been officially confirmed by GAC Toyota.

Founded in 2004, Toyota and GAC Group each own half of GAC Toyota, which has the  capacity to turn out 1 million vehicles.

GAC Toyota sold 452,000 cars in the first half, down 9.5 percent from a year ago, including 87,000 units in June, representing a 13.5 percent year-on-year drop. It sold just 1,019 pure electric Toyota bZ4X sport utility vehicles, far below those of China’s other new energy vehicle makers, and even lower than Volkswagen’s.

Editor: Tom Litting