Japan Tobacco Inc. (2914) is cutting 1,600 jobs and closing four factories in the country as part of its plan to boost domestic competitiveness and profitability.
The job cuts, or about 18 percent of the company’s workforce, will be made through a voluntary retirement program that will be offered to eligible employees in the Japanese domestic tobacco business and corporate functions, it said in a statement today. Most of these staff will leave the company at the end of March 2015 with more expected the year after.
“Our Japanese domestic tobacco business operates in an increasingly challenging environment, mainly due to consecutive tobacco tax increases, tightening of smoking related regulations, growing health consciousness and an aging society,” the Tokyo-based company in a statement to the Tokyo Stock Exchange today.
Japan Tobacco, Asia’s largest listed tobacco maker, faces declining demand in its home market amid a shrinking population and has been expanding its overseas business to offset the weakening domestic market. The ratio of smokers in Japan fell 4 percentage points to 20.9 percent over the last four years, according to company’s website.
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via Japan Tobacco Cuts 1,600 Jobs in Buyouts, Closes 4 Factories (3) – Businessweek.
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