Hitachi Metals Ltd. said Tuesday that it will cut some 1,000 jobs through a voluntary redundancy program by the next fiscal year as its earnings have been eroded by the impact of the novel coronavirus pandemic.
Including through attrition and cuts in nonregular workers, the company plans to slash about 3,200 jobs, or nearly 10% of its total workforce.
For six months from October, executive remuneration will be returned, and salaries of managerial employees will be reduced.
“We need to revamp our cost structure further,” Hitachi Metals Chairman and President Mitsuaki Nishiyama said during a teleconference, indicating the firm’s plans to implement measures such as selling some of its real estate holdings and withdrawing from unprofitable operations, on top of cost reductions.
On Tuesday, Hitachi Metals reported a consolidated net loss of ¥33.21 billion for the April-September first half of fiscal 2020, after posting a net loss of ¥40.99 billion a year before.
The latest red ink reflected impairment losses totaling ¥24.5 billion in sectors including magnets, and automobile and aircraft parts, due to the fallout of the coronavirus pandemic.
The company’s consolidated sales in the six-month period fell 25.4% year on year to ¥340.83 billion.
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.