1,067 Employees Apply for Leopalace21 Redundancy Program

Economy

Tokyo, Aug. 7 (Jiji Press)--Japanese apartment rental company Leopalace21 Corp. <8848> said Friday that 1,067 employees have applied for its voluntary redundancy program, roughly the same as the number targeted by the company.

The applicants will leave the company on Aug. 31. Leopalace21 has been seeing its earnings deteriorate following a shoddy construction scandal.

The redundancy program covered employees aged 35 or over.

Leopalace21 booked some 2.5 billion yen in severance pay and other costs related to the program as extraordinary loss for the April-June quarter. The amount has already been factored in the company’s earnings estimates for the full year through March 2021.

The firm also said that it will close down 26 directly operated outlets by the end of this month, in addition to 21 outlets it shut by the end of May. The number of its directly run outlets will fall to 142 from 189 as of the end of March.

[Copyright The Jiji Press, Ltd.]

Jiji Press