Reports: NTT to Shift Work Force
TOKYO (AP) _ Telecommunications giant Nippon Telegraph and Telephone Corp. will shift more than half its work force to planned regional companies as part of cost-cutting plans, Japanese newspapers reported Tuesday.
NTT will slash its current work force of about 113,000 by approximately half by transferring around 60,000 workers under a three-year program, the nationally circulated Yomiuri newspaper said.
NTT spokesman Isao Yoshikawa said management recently began discussing a restructuring program with the company’s labor union. But he said details, including the number of workers to be transferred and estimated amounts of potential savings, had yet to be completed.
The company decided it needed to carry out bold restructuring to cut personnel costs and strengthen its competitiveness in Japan’s fierce telecommunications market, the Yomiuri said.
The Mainichi, another mass-circulation daily, said NTT’s management has already started consulting with the company labor union over the restructuring measures.
The plan also calls for a cut in salaries by 20 to 30 percent for those aged 51 or older who will be transferred to the yet-to-be established local companies, the reports said.