business

Virus-hit Japanese companies turn to early retirement to cut costs

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A rapid drop in demand is pressing executives to quickly cut costs through reducing personnel, Tokyo Shoko Research said.

Problem, over paid "executives" wanting to keep their salary!

Some companies lowered the eligible age to the 30s or even to the 20s (from the typical age of around 45 or older), as they urgently need to scale back their workforces in response to rapidly worsening earnings," the agency said.

20's or 30's? Me thinks someone has NO idea what the meaning of "retirement age" is!

Just a nice way of saying "fired"! Back in the "bubble years" it was "ristora" or restructured.

I want to hear some 20's person tell me, or anyone, that the reason they arent working is because "teinen taishoku" Lol!

16 ( +18 / -2 )

Early retirement? A grest way to for a company to lose their best workers and retain the dead wood......

21 ( +22 / -1 )

great....

5 ( +6 / -1 )

Yup, overpaid executives, Showa ossan...no vision, and no flexibility. They should be looking at companies like Fuji Film who went from a film company and expanded into precision devices and pharmaceuticals. Unfortunately, the world leader that Fuji Film was competing against was Kodak who failed to diversify and remained entrenched in its old ways thus going the way of the dinosaurs.

11 ( +12 / -1 )

Wasn't that long ago the government raised the retirement age citing lack of workers! Now it's a lack of work that's the problem. Flexibility and nimble government Buisness actions sadly lacking. Also government supporting Buisness as usual but not people in their 20s/ 30s who find themselves suddenly retired?

8 ( +9 / -1 )

Great news! Who doesn't want to retire after graduating from university! Way to go!

9 ( +10 / -1 )

With a small company payout, and miniscule pension, many of these will be joing the blue sheet inhabitants of the underground passages and Kanto green space, as they won't have enough to live on. And forget buying a house, having children or buying a car. Or maybe, just maybe, they can find another job.

8 ( +9 / -1 )

This virus was and still is needed to get Japan out of the 80's and into reality, finally. The Japanese needed this push. My local bank is already talking about getting rid of the Hanko and going online for most of the dealings -- even mortgage renewal etc-- The ones that are getting booted are not only the young graduates but also the ones reaching retirement who are earning the most ^^ for the least amount of work. They are getting rid of those people as well. The over 50's have a huge saving nest and will just get a job at the conbini to pass time and not have to Dip into their savings. The younger generation will just have to work in blue collar jobs until things improve. It's not the end of the world. People are still having babies, buying houses and cars. At least where I live, Shikoku, it's life as usual here!

4 ( +7 / -3 )

I know one thing: However bad it gets here, the Japanese will take it, even if 90% of them are living in cardboard boxes under blue tarps. They will never rise up. So if you're banking on that happening, you'll be sorely disappointed.

8 ( +8 / -0 )

Does anyone knows if one of them go on early retirement in the age of let's say 25 they will get the lifetime pension plan?

Would be nice to get 70 000¥ for early retirement (someone will call it basic income).

If that would happen, I'm going to rural inaka renting some cheap mojo and stay there enjoy the nature, do gardening instead of working in Tokyo for pennies.

4 ( +6 / -2 )

My Japanese friends get ¥65000 a month from their pension. My dog eats about ¥30000 a month for food.

throwing old people out who recovered japan from WW2 is disrespectful at the least.

As 80% of virus deceased are old, maybe the Olympics will solve the economic crisis?

1 ( +5 / -4 )

If it were me, I'd take the severance and use the time and money to pick up an industry certification, like CFA. Once the situation returns to near normal, I'd end up way better off than if covid never happened.

2 ( +3 / -1 )

The figures aren’t much different from previous years. It seems like some people will use the virus as an excuse for anything.

4 ( +4 / -0 )

Goodlucktoyou, you must be feeding your dog on a very rich diet 30k monthly? Mine costs about the equivalent of 2300 per month and he is a big dog!

I assume the 65k is the equivalent of the state pension? No other pension provision? No other support payments available?

I agree the biggest cost savings would be in cutting the senior management back to the bone; keep the productive and streamline the work processes.

2 ( +2 / -0 )

By calling it an early retirement program, the company can expense all outlays as a one-time hit to the bottom line, and analysts and lenders will look past it to the following year's projections. If they called it something else, the analysts and lenders would believe the company was bleeding cash with no end in sight.

0 ( +0 / -0 )

Last week or a few weeks ago we read about low unemployment rate and acute labor shortage and

then this contradictory narrative, so which is it really ?

The narratives here are so trumpist.

3 ( +3 / -0 )

Retirement at 20!! Most of these kids are barely out of school

4 ( +4 / -0 )

MMMMMMMM. Economy will not improve.

1 ( +1 / -0 )

Why dont they get rid of all of the Hanko stampers? this will free up time and reduce the wage bill

1 ( +1 / -0 )

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