Toyota Motor Corp (TM) is cutting 2,600 jobs in Australia.

The auto company is cutting its Australian workforce from 3,900 to 1,300. Toyota is laying off 350 jobs from its Sydney office — located in Caringbah in the Sutherland Shire — when the office shuts down its operations in 2017.

President Dave Buttner believes that white collar employees will be moved to Melbourne in 2018, the year that Toyota becomes a national sales and distribution company in Australia.

“This year has been extremely tough for everyone at Toyota Australia,” he said. “We understand it is a difficult time for many of our employees and we are committed to supporting them.”

TM stock is up about 0.9% Wednesday afternoon.