Sega to Cut 1,000 Employees through Early Retirement Offers
Sega Enterprises announced Friday that it had approached its labor unions regarding its planned offer of early retirement packages to 1,000 employees, 25% of its total workforce. Sega is expected to record a final loss for fiscal 1998 of up to 32.8 billion yen. A restructuring plan released on April 28 did call for reduction of the workforce by 1,000 through attrition and transfers to affiliates. The new early retirement offer is intended to meet the urgent need to trim the workforce quickly as no timely recovery is expected in performance, according to the company, and will be extended to all workers who sign up in the two week period started Friday. Sega plans to charge about 3 billion yen in the current year to extraordinary losses in connection with the retirement buyouts. The reduction should result in savings of about 10 billion yen a year.
Ref: COMLINE Business News, 05/10/99
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