NTT Considering Major Cut in Staff
TOKYO (AP) _ Japanese telecommunications company Nippon Telegraph and Telephone Corp. is considering cutting its staff by 20,000 people, a company spokesman said Monday.
The company is also studying a plan to reduce annual capital spending by $2.8 billion from the $26 billion it plans to spend in the current fiscal year through March 2000, spokesman Kenya Nakatsuka said.
The personnel reduction would bring NTT’s total workforce to just over 200,000.
NTT is considering including these plans in a three-year business reform program that it is currently compiling, and both would take effect by March 2003, Nakatsuka said.
In July, NTT split its business operations into two regional telephone companies and one long-distance and international phone business.
The splitup was part of a major overhaul in Japan’s once highly regulated phone and communications industry. NTT is the world’s second largest telecommunications company after AT&T Corp. of the United States.
A cut in the huge labor costs at the regional carriers is reportedly one of the biggest issues facing the company since reorganization. The planned personnel reduction is expected to focus on the two companies.