Japan's biggest bank is set to undergo the most dramatic reduction in head count since it was formed after the nation's banking crisis shook the industry almost 20 years ago.
Mitsubishi UFJ Financial Group Inc. is considering eliminating about 10,000 positions — about 7 percent of its workforce — over a decade as low interest rates and intensifying competition squeeze profit, people with knowledge of the matter said. That's more than double the 3,500 full-time roles that President Nobuyuki Hirano said last year that MUFG would cut from its main banking unit through natural attrition and less hiring.
The move is a striking example of how Japanese banks are struggling with an increasingly challenging business environment as the central bank's negative-rate policy erodes margins and a shrinking population curtails credit demand. MUFG is seeking to reshape itself by closing branches and boosting technology investment, as digital advancements transform the financial industry and provide an opportunity to save costs.