More firms soliciting voluntary retirements

February 5, 2018

Tokyo- More and more listed companies in Japan are soliciting voluntary retirements, as they move to cut high-paid middle-aged and older workers to slash labor costs.

The number of listed companies that solicited voluntary or early retirements stood at 25 last year, up seven from the previous year, credit research firm Tokyo Shoko Research Ltd. said. The 2016 figure was the lowest since 2000.

The 2017 result represented the first increase in five years. The figure hit a peak of 200 in 2002.

In 2017, precision equipment maker Nikon Corp. solicited 1,000 voluntary retirements, while drug distributor Suzuken Co. and clinical examination operator Miraka Holdings Inc. each offered such retirement programs for 350 employees.

The rise in 2017 was affected by a better job market that has made it easier to change jobs, a Tokyo Shoko official said.

Japan's seasonally adjusted job opening-to-seeker ratio came to 1.50 last year, the highest level since 1973, when the country was in the midst of a high economic growth period.

An increasing number of companies have taken structural reform steps in preparation for the future, thanks to increased internal reserves amid strong earnings. Jiji Press