Large companies have been rolling out voluntary redundancy and early retirement programs due to worsening business performance caused by the coronavirus pandemic.
According to Tokyo Shoko Research Ltd., as of Friday, 41 listed companies had announced such programs in 2021, and 9,374 employees had been invited to apply, which is almost double the figures recorded in the same period last year, during which 4,327 employees were offered such programs at 22 companies.
In 2020, 18,635 employees were offered early retirement or voluntary redundancy at 93 listed companies due to poor performance, exceeding the figures recorded in 2012 (63 companies, 17,705 employees) -- one year after the Great East Japan Earthquake -- and coming second to those reported in 2009 (191 companies, 22,950 employees), one year after the collapse of U.S. investment bank Lehman Brothers triggered a global financial crisis.
In 2021, Japan Tobacco Inc. and Kintetsu Group Holdings Co. announced that they would call for applications.
Among the 41 companies that have announced programs, 6 firms, including apparel giant World Co., are doing so for the second consecutive year.
Tokyo Shoko Research said that the number of companies offering such programs and the number of applicants will increase due to the prolonged coronavirus crisis.
The employment situation at small and midsize companies is also unstable.
According to a survey conducted by the Japan Chamber of Commerce and Industry in February, 6.2% of member companies said that they will consider or implement measures to reduce personnnel.
The same response was 3.9% as of June 2020 and 4.3% as of September 2020.
In May, the government plans to reduce subsidies that companies can utilize to pay furlough allowances to employees. JCCI intends to call for the special subsidies to be extended.
"The subsidies have played a significant role in maintaining employment," JCCI Chairman Akio Mimura said.
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