Department store operator Marui Co. said Tuesday it has agreed with its labor union to cut 95 percent of its parent company workforce via transfers to subsidiaries, effective Oct. 1.

Marui said that the 6,500 regular workers currently employed at the parent firm will be reduced to about 300, all at the managerial level.

The new measure is aimed at strengthening the group’s customer service and sales operations, with employees required to specialize in various fields within the group.

Around 5,500 employees will transfer to 11 group firms, while some 700 workers who have applied for early retirement are scheduled to resign on Sept. 30, Marui said.

The company said it will pay retirement benefits to those who transfer to group firms. Moreover, in cases where salaries fall as a result of transfers, it will compensate the difference in pay for a period of five years.

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