OSAKA -- Izumiya Co., a midsize supermarket operator based here, will close down nine of its 20 loss-making stores and eliminate 400 jobs by introducing an early retirement program by the end of February 2003, the company said Tuesday.
The planned job cuts will affect about 35 percent of Izumiya employees who are 40 years old and over, or those who have served in the company for at least 17 years.
The measures are part of a two-year revitalization plan to be implemented in fiscal 2001 and 2002.
For the current business year, through the end of February, Izumiya expects 14.3 billion yen in consolidated net losses on sales worth 365 billion yen; it will be the company's first time in the red since listing on the Tokyo Stock Exchange in September 1973.
Through the planned revitalization scheme, the company aims to reduce costs by 11.3 billion yen in fiscal 2001, then achieve 365 billion yen in sales in fiscal 2002 and 1.3 billion yen in net profits.
The company also announced that Vice President Norio Hayashi, 65, will be promoted to president Feb. 1, replacing current President Shigeru Wada, 78.
Hayashi, formerly a Sumitomo Bank official, will be the first president who is not a member of the founding family.
Wada will become chairman without the right to represent the firm.
Of the total 20 loss-making stores -- six in the Kanto region and 14 in Kansai -- four will be closed in fiscal 2001, and five more in fiscal 2002.
"We will pick the nine that will be most difficult to make profitable," Hayashi said.