Kinki Nippon Tourist Co. on Wednesday released a three-year business plan under which it will cut its regular workforce by 1,000, or 20 percent, by the end of fiscal 2005.
The travel agency said it aims to resume dividend payments in fiscal 2005 by shifting its resources to growth areas.
Under the new midterm business plan, the number of regular employees will be cut to 3,770 from the current 4,776, while the number of contract-based employees will be increased by 700.
As a result, the proportion of regular staff in the workforce will decline to 60 percent from the current 80 percent, the company said.
In addition, Kinki Nippon will close 11 branches and sales outlets by the end of this year, it said.
The company also said some of its outlets will stop serving individual customers and concentrate on corporate clients.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.