Sumitomo Mitsui Financial to Cut Work of 5,000 Employees

Economy

Tokyo, May 22 (Jiji Press)--Sumitomo Mitsui Financial Group Inc. <8316> will reduce the equivalent of work done by nearly 5,000 employees over the three years to March 2020, up from 4,000 employees as previously planned, it was learned Wednesday.

The Japanese megabank group hopes to streamline its business further by speeding up efforts to automate over-the-counter services and go paperless through the use of information technology.

The number of domestic employees is expected to fall naturally by almost 4,000 over the three years, as new hires are being curbed and many workers are set to reach the mandatory retirement age, sources said.

Financial institutions in Japan are moving to rationalize their operations as prolonged superlow interest rates hurt their business performance.

Among the other megabank groups, Mitsubishi UFJ Financial Group Inc. <8306> has revised up its target for workload reductions by fiscal 2023 from the equivalent of 9,500 workers to over 10,000 workers, while Mizuho Financial Group Inc. <8411> is expected to move up its own employee reduction efforts.

[Copyright The Jiji Press, Ltd.]

Jiji Press