OSAKA -- Financially ailing Nankai Electric Railway Co. has unveiled a radical restructuring program, saying it will slash more than 20 percent of its workforce, reduce pay and close down unprofitable subsidiaries.

Nankai, a major private railway operator in western Japan, is projecting a 53.3 billion yen net loss on a consolidated basis for the business year that ends March 31. The debt is substantially higher than the 2.5 billion yen loss projected in November.

In a statement released Friday, Nankai said it plans to reduce its workforce from 3,170 staff at present to 2,500 by the end of March 2005, primarily through attrition and a moratorium on new hiring.