Leopalace21 to Ask 1,000 Workers to Leave Voluntarily

Economy

Tokyo, June 4 (Jiji Press)--Leopalace21 Corp. <8848> will ask around 1,000 employees, or some 15 pct of its workforce, to apply for a voluntary redundancy program, informed sources said Thursday.

Through the buyout program, the major apartment rental company hopes to implement drastic management reform, including staff reduction, as it has been suffering from a drop in earnings due to a fall in the average apartment occupancy rate stemming from its shoddy construction scandal.

Also on Thursday, Leopalace21 revised its consolidated net loss estimate for the year that ended in March from 30.4 billion yen to 80.3 billion yen, bigger than the 68.6-billion-yen loss recorded in the previous year.

The larger loss projection reflects a drop in the apartment occupancy rate and increased repair costs for defective apartments.

Leopalace21 will extend a 60 pct cut in executive pay for President Bunya Miyao, which was to end in March, through the end of March 2021.

[Copyright The Jiji Press, Ltd.]

Jiji Press