• Kyodo

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Struggling Kinki Osaka Bank will skip bonus payments this winter and cut employees’ annual pay by 30 percent to accelerate restructuring, bank officials said Thursday.

The pay cut will take effect beginning November, they said.

The bank, which operates under Resona Holdings Inc., also skipped bonus payments this summer. Until last year, each employee received a bonus worth between one and 1 1/2 month’s pay in the summer and winter.

A senior bank official said a substantial cut in personnel costs is needed to turn the bank’s business around. “We will keep the bonus freeze in place until we see signs of recovery in our business,” he said.

As a result, the annual pay for a branch manager will be reduced to around 7 million yen from 9 million yen, while that for a section chief will fall to about 4 million yen from 6 million yen, the officials said.

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