Japan's major travel agency, JTB, plans to eliminate 6,500 jobs, as it expects to post the largest ever net loss this fiscal year, due to the coronavirus pandemic.
JTB announced on Friday that its group expects to incur a net loss of about 950 million dollars during the current business year, which ends next March. That's the largest deficit the group has ever recorded.
JTB officials say they will rebuild the business by promoting early retirement and by implementing a freeze on the hiring of graduates in 2022. They are planning to reduce the number of jobs from 29,000 to 22,500 during the next fiscal year. They will cut 2,800 jobs in Japan and 3,700 jobs overseas.
The officials are also planning to increase online sales and reduce the number of offices in Japan by 115. Employees will be asked to take a 30 percent cut in annual earnings, and they will not receive year-end bonuses.
JTB President Yamakita Eijiro said the company is resorting to job cuts with the utmost reluctance. He expressed his resolve to pave the way for profitability to be restored.