Sompo Japan to Cut 4,000 Jobs

Economy

Tokyo, June 24 (Jiji Press)--Sompo Japan Nipponkoa Insurance Inc. plans to cut the number of its employees by about 4,000, or 15 pct of its workforce, from the fiscal 2017 levels, it was learned Monday.

By reducing its payrolls to 22,000-23,000 by the end of fiscal 2020, which starts next April, the unit of Sompo Holdings Inc. <8630> aims to save some 10 billion yen per year in labor costs, informed sources said.

Sompo Japan will capitalize on information technology to carry out its business rationalization. The workforce cut will be achieved also by relocating employees to group firms and reducing the number of new graduates it hires.

The company will not offer an early retirement program, the sources added.

In the Japanese financial sector, Mitsubishi UFJ Financial Group Inc. <8306> and other megabank groups are boosting efforts to replace manpower with IT.

[Copyright The Jiji Press, Ltd.]

Jiji Press