Photo: REUTERS file
business

Seven & I shares surge on plan to cut 3,000 jobs, shut stores

10 Comments

Shares of Japan's Seven & I Holdings Co rose nearly 6% on Friday after the retail group said it will shut or relocate nearly 1,000 7-Eleven convenience stores and cut about 3,000 jobs as part of a group-wide restructuring.

The company said it will also lower franchise fees at its 7-Eleven convenience stores and offer owners more assistance to keep them open 24 hours, a move likely to hit margins.

The company has faced complaints by franchise owners, some of whom were forced to keep working amid massive snowstorms or in the wake of a family death, attracting nationwide attention and scrutiny from regulators.

It also announced on Thursday that it will accelerate closures of some Ito-Yokado supermarkets as well as poor-performing department stores under the Sogo and Seibu brands.

As a result, the company plans to cut around 3,000 jobs throughout the group over the next few years. It workforce totaled 144,628 employees as of end-February.

Seven & I Holdings reiterated its forecast of a rise 2% in annual operating profit to 420 billion yen ($3.89 billion), putting it on track for a its ninth consecutive year of record earnings.

© (c) Copyright Thomson Reuters 2019.

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The company has faced complaints by franchise owners, some of whom were forced to keep working amid massive snowstorms or in the wake of a family death, attracting nationwide attention and scrutiny from regulators.

Franchise owners they are business owners, even they are under pressure to keep working despite that face unfortunate things like snowstorms etc. I only can imagine what happen to those ordinary employee.

0 ( +1 / -1 )

This is the problem with capitalism.

People lose their jobs and the valuation goes up. Happy shareholders at the expense of those who gave their blood, sweat and tears.

8 ( +9 / -1 )

@kiwi Not true. Capitalism is the best system available. Have you studied the others? Problems are hard headed bosses that disrespect their workers.

-2 ( +2 / -4 )

Problems are hard headed bosses that disrespect their workers.

Isn't that the crux of what Capitalism really is, resource exploitation?

4 ( +4 / -0 )

Seven & I Holdings reiterated its forecast of a rise 2% in annual operating profit to 420 billion yen ($3.89 billion), putting it on track for a its ninth consecutive year of record earnings.

Something is really wrong.

Company profits are feted over the welfare and happiness down the production chain that work undet adverse conditions to achieve the profits.

Animal farm is alive.

4 ( +4 / -0 )

Meant, welfare and happiness of workers

2 ( +2 / -0 )

$3.89 billion in profits? Can anyone answer the question "How much is enough"?

2 ( +2 / -0 )

People lose their jobs and the valuation goes up. Happy shareholders at the expense of those who gave their blood, sweat and tears.

Exactly! Learn that, and you're halfway there to your MBA degree.

1 ( +2 / -1 )

@NCIS Reruns - and the other half is ... ? ..... that in order to expand you need to be seen by your shareholders as a "Visionary" and hire lots of new staff.... ?

0 ( +0 / -0 )

It does not take much for one to see the fierce competition between Convenience Stores and mini-Supermarkets such as those operated by the Goliath "Aeon".,,,, I didn't need an MBA for that one.

0 ( +0 / -0 )

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