Comprehensive chemical maker Showa Denko K.K. said Thursday it will cut an additional 1,000 jobs at its group firms and reduce salaries up to 33 percent in 2002 to survive the harsh business environment.
The job reduction will be carried out through early retirement in January, bringing the number of jobs cut since the end of 1998 to about 5,000 on a group basis, Showa Denko said.
The Fuyo group company said board members will take an annual pay cut of up to 33 percent starting in the same month, while managers' salaries will be cut 10 percent and union members' 5 percent.
Showa Denko said it expects the job cuts to save 8 billion yen and the pay cuts to save 2 billion yen.
But it will have to post a one-off loss of 10 billion yen in the 2002 business year to cover retirement allowances.
Showa Denko said it expects its total job cuts to reach 3,980 by the end of this year and 4,832 by the end of 2002, easily attaining its initial target of 2,500 job cuts over three years under a restructuring program launched in 2000.
Showa Denko said it expects the job cuts to save 25.5 billion yen by the end of 2002, compared with the initial target of 20 billion yen.