Following a review, the carmaker, which has been rocked by a global recall crisis, said 750 posts will be axed at its two factories in Derbyshire and Flintshire.
The announcement, which came after discussions with unions, said staff will return to full-time working from April, after a year of a 10 per cent reduction in hours and pay.
In 2008 the UK?factories produced more than 213,000 vehicles but this fell to 127,390 last year.
This reflected an industrywide slump of 30.9 per cent in car production in 2009.
Toyota produces the Auris and Avensis in the UK.