Isetan Co. said Tuesday it will try to boost its operating profit to 15 billion yen in fiscal 2005 from an estimated 10 billion yen in fiscal 2002 under a three-year business plan featuring drastic cuts in personnel costs.
Under the fiscal 2003-2005 plan, the department store chain said it will revamp benefit programs and reduce its regular workforce.
The company will also gradually introduce a performance-based wage system for mid-management employees, it said.
The regular workforce will be reduced to 4,200 from 4,700 through attrition and by other means, the company said.
Isetan estimates these measures will cut personnel costs to 46.2 billion yen in three years from an estimated 48.7 billion yen in fiscal 2002, which ends this March 31.
The company said it also hopes to cut its group interest-bearing debts to 90 billion yen or less from 126 billion yen as of the end of last September.
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