RENOWN PLANS TO CUT 700 JOBS
TOKYO — As part of a restructuturing, Renown Inc. plans to cut its personnel from 4,000 to 3,300 by February 1996.
“This is the right time. If we lose this chance, we will lose the strength of the corporation to do restructuring as time goes by,” said Mahiro Matsuzaka, president of the giant apparel firm, which has been struggling to get out of the red.
The reduction will be through attrition, shifting employees to related operations, and voluntary resignations. Those who leave voluntarily will get one year’s pay. The company expects about 400 to accept the resignation offer.
The reduction and other cost-cutting measures are aimed at bringing personnel costs down to $410 million (40 billion yen) a year, from $497.2 million.
In the first half of fiscal 1994, which ended July 31, Renown had a net loss of $94.3 million (9.2 billion yen), an operating loss of $100.5 million (9.8 billion) and sales of $943.1 million (92 billion yen).
For the year ending Jan. 31, 1995, the company projects a net loss of $99.4 million (9.7 billion yen) on sales of $2.1 billion (206 billion yen).
— Fairchild News Service