Hitachi, others slash more jobs in Japan

TOKYO, Japan -- Job cuts dominated Japan's corporate picture on Wednesday, as several mergers moved ahead.

Between the fresh cuts Wednesday and announcements late Tuesday, four companies said they were shedding 12,500 positions in all.

Chipmaker Hitachi said it would eliminate 4,000 more positions by June, through an early-retirement scheme.

The electronics company had already declared cuts but now expects to shed 16,350 jobs in all.

The general contractors Mitsui Construction and Sumitomo Construction said they will eliminate 500 jobs, as they confirmed they will merge their operations.

The companies, which share the same bank, said yesterday that they have been discussing that move. But they confirmed Wednesday they will integrate their operations in one to two years.

Airlines trimming 20 percent of positions

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To make matters worse for job hunters, Japan Airlines, the country's flagship carrier, said Tuesday it plans to cut 3,000 jobs when the airline combines with Japan Air Systems.

The two airlines had already said they would merge later this year. But on Tuesday, they said they will set up a holding company, Japan Airlines System Corp., on October 2.

They will then merge operations into three group companies by early 2004 at the latest, the companies said.

The job cuts, around 20 percent of total jobs, will come by March 2006, the companies added, in a move they hope will save 73 billion yen ($547 million) that year.

Separately, trading company Nissho Iwai Corp. said it would shed 5,000 jobs by March 2005.

Japan is suffering through its fourth recession in a decade. The job cuts come as the government announced on Tuesday that the country's jobless rate has hit an unprecedented 5.6 percent.

Most companies in Japan prefer to cut headcount by freezing hiring or offering early retirement, and layoffs are rare. Some critics say that holds back their efforts to revamp compared with countries like the United States.

Prime Minister Junichiro Koizumi has warned Japan to brace for painful changes, including positions being eliminated.

On Wednesday he fired his foreign minister, Makiko Tanaka, saying she was holding up his efforts at reform.