A unit of Citizen Watch Co. that makes analog watches will offer buyout packages to 550 employees, the parent company said.
The move by Citizen Watch Manufacturing Co. on Tuesday comes as demand for analog watches falls amid strong sales of smartwatches and economic turmoil caused by the coronavirus pandemic.
The unit, based in Tokorozawa, Saitama Prefecture, judged that analog watch demand will not recover in the mid- to long term.
Citizen Watch Manufacturing has some 3,000 employees working at 17 factories in 10 prefectures, including Hokkaido, Fukushima, Niigata and Nagano.
Employees who will receive the buyouts will be 36 or older and scheduled to leave the company at the end of December.
Your news needs your support
Since the early stages of the COVID-19 crisis, The Japan Times has been providing free access to crucial news on the impact of the novel coronavirus as well as practical information about how to cope with the pandemic. Please consider subscribing today so we can continue offering you up-to-date, in-depth news about Japan.