Fuji Sash Implements Cost Cut Measures with Severe Construction Market

Fuji Sash announced restructuring measures including layoff, job cut and officers’ salary cut on Monday. The firm posts larger net loss for a fiscal first-half year ended in September than previously estimated. The firm’s profitability has worsened due to significant drop of domestic construction market.

Fuji Sash will implement layoffs in all business units except for the sales department and the plants from November 1st to October 31st, 2010. Each business unit will take 3-day layoffs per month.

As to job cut, the firm solicits voluntary retirement for 25 employees from all staffs and workers at above 50 years old during the term by November 10th. The firm adds early retirement payment on ordinary retirement allowance. Additionally, the firm suspends reemployment of over-retirement-age staffs.

Fuji Sash has reduced fee payment for the officers by 10-20% since November 2008. The firm raises the fee cut range to 15-30%, including the auditing officers.

The firm also eyes total cost cut including material procurement cost down and productive optimization.