Kinki Nippon Tourist Co. will sell its headquarters to Kinki Nippon Railway Co. later this month to raise retirement funds for personnel retiring early under its streamlining efforts, officials announced Wednesday.
The country's second-largest tourist agency will sell land and a unit of its headquarters in Tokyo's Chiyoda Ward to its parent company for 3.1 billion yen, raising 1.9 billion yen out of the transaction.
At the same time, the travel agency announced that its net loss will grow to 13.6 billion yen from 7.8 billion yen in an initial forecast this year due to the sharp drop in demand, especially the decline in the number of overseas travelers. It estimates sales for the current year at 87.7 billion yen.
The travel agency plans to cut back on the number of employees by 900 between 1999 and 2001 through early retirement programs and curbing new employments, reducing personnel costs by 5.5 billion yen in 1999.