On Friday, Toyota has forecasted its first annual net loss since 1950. The expected loss is 350 billion Yen, i.e., $3.85 billion for the fiscal year running through March.

Toyota’s profit has drastically gone down comparing to the previous year from the record 1.72 trillion Yen profit.

This prediction has come up with keeping in view the posted loss for Oct-Dec quarter, which was 164.7 billion Yen i.e. $1.8 billion. Previous year’s recorded profit for the same quarter had been 458.6 billion Yen. Quarterly drop of profit to Toyota Corporation has been 28.4% to 4.8%.

Toyota recorded its previous loss in 1950, without any quarterly loss descriptions. Since 2002, when it started reporting its quarterly sales, it is the first quarterly net loss to be recorded.

Though Toyota is facing a big loss at this time, it has not announced any further job cut downs, as was reported on Friday. Rather, it plans to reduce the number of contract workers from 8,800 in June last year to 3,000 in March.

The contract workers are not much expensive for the company; they do not share the benefits as the regular employees do. Else, they do not have a life time employment guarantee.

It is said that Toyota need to add innovation to its products to boost sales. Mitsuo Kinoshita, Executive Vice President Toyota said that Toyota will return to its previous stature by developing gas-electric hybrid: “By taking these measures, we will overcome the current crisis and evolve into a company with a higher level of efficiency and resilience.”