business

Travel agency JTB posts largest 1st-half net loss; to cut 6,500 jobs

7 Comments

Major travel agency JTB Corp said Friday it will reduce its global workforce by 6,500 under broad restructuring, as it reported its largest-ever net loss for a fiscal first half on slumping tourism demand caused by the coronavirus pandemic.

JTB posted a record net loss of 78.17 billion yen for the April-September period, compared with a net profit of 4.35 billion yen in the first half last year.

The company also plans to reduce 115 outlets in Japan and close over 190 overseas, while cutting employees' annual salaries by 30 percent on average in the next fiscal year starting April.

The envisaged reduction of 6,500 employees, equivalent to 20 percent of its total workforce, from the end of fiscal 2019 will consist of 2,800 in Japan and 3,700 overseas.

"We will thoroughly reduce costs to return to profitability in the next business year," JTB President Eijiro Yamakita told a press briefing.

The company expects a record pretax loss of around 100 billion yen for the current business year through March, highlighting the severity of the hit to tourism from the pandemic that has led to travel restrictions globally.

By offering early retirement and forgoing the recruitment of new graduates, JTB aims to reduce its total personnel to 22,500 by March 2022.

The Japanese government is seeking to revive domestic tourism by offering subsidies, but it has faced the difficult task of keeping the spread of the coronavirus in check while supporting the economy.

A resurgence of coronavirus infections has raised the alarm in Japan, while the United States and some European countries are also battling to curb COVID-19 cases.

© KYODO

©2020 GPlusMedia Inc.

7 Comments
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to cut 6,500 jobs

Lay off in Japan? They said it can't be happened.

4 ( +5 / -1 )

No mention of "lay offs," but that's the Japanese media for you.

"2,800 in Japan and 3,700 overseas."

I wonder if the people overseas will be laid off while their Japanese counterparts will be offering early retirement?

cutting employees' annual salaries by 30 percent on average

this is a big reason why the Japanese economy is deflationary and why the people have a "deflationary mindset." If you expect to receive less, you will expect lower prices in the future.

7 ( +7 / -0 )

Sorry for those employees who lost jobs and those on 30% cuts.

Unfortunately pausing go-to isnt going to help them

-3 ( +1 / -4 )

Think of the incredible bad management at JTB. For decades they have been prioritised by all federal and local governments for all travel bookings at not even competitive prices. Currently money is thrown at them for the go to campaign for no good reason and they have had a quasi monopoly until H.I.S. Managed to break it.

they have always been over staffed, never shown any commercial spirit or creative business acumen.

They push “ packages “ down the throats of travellors and bully airlines and hotel to accept their ultra low payments or else. The sooner JTB goes bankrupt the better and good travel agencies will be free of a decade long bully

7 ( +7 / -0 )

But,but...?! I thought the tax funded wealth transfer corporate welfare subsidy GoTo was going to help these companies to stay afloat to save jobs?

2 ( +2 / -0 )

Think of the incredible bad management at JTB. For decades they have been prioritised by all federal and local governments for all travel bookings at not even competitive prices. Currently money is thrown at them for the go to campaign for no good reason.they have always been over staffed, never shown any commercial spirit or creative business acumen.

Absolutely agree....they remind me of NHK, overprotected, uncompetitive, inept amakudari run, unable to change J-Inc dinosaur from another era....their decision to start charging people for " consultation" when visiting their stores from last year was unbelievably arrogant and incomprehensible.

JTB started to charge fees for travel consultations from April this year at a total of 12 branches -- in the Greater Tokyo Area, the Tohoku region in northern Japan and the northernmost prefecture of Hokkaido -- including the ones in Tokyo's Shibuya Ward. It costs 2,160 yen for a consultation about a trip inside the country and 5,400 yen for an overseas trip,

3 ( +3 / -0 )

this is a big reason why the Japanese economy is deflationary and why the people have a "deflationary mindset." If you expect to receive less, you will expect lower prices in the future.

You have somewhat to sympathize because the rich folks of 20th century gambled all Japanese wealth on ridiculous bubbles. The 1990s one is the most devastating one ever, and will be surpassed by 2020s soon. Japan ran out of opportunities and wealth to make itself into a consumer economy and a technological/economic independent nation from the US. When China woke up, Japan is simply f_u_cked from the start. It begun around 2008.

Lay off in Japan? They said it can't be happened.

I am quite surprised that Japan will introduce the concept of "firing" or "lay-off" in the coming years. Finally, Japan has been neoliberalized and Americanized.

They push “ packages “ down the throats of travellors and bully airlines and hotel to accept their ultra low payments or else. The sooner JTB goes bankrupt the better and good travel agencies will be free of a decade long bully

Not just in Japan, all major travel agencies in the world will go bankrupt soon. Thanks to Covid-19 and technological advances that encourage solo travelers.

3 ( +3 / -0 )

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