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Mizuho seen slashing pay, jobs
TOKYO, Japan -- Mizuho Financial Group plans to cut salaries 10 percent and slash 3,000 more jobs, according to a report. The world's largest bank by assets is making the cuts in a restructuring program aimed at accelerating its bad loan writeoffs, the Yomiuri Shimbun reported on Sunday. The bank has been prepping for a tough restructuring since July, the newspaper stated. It is striving to boost capital as the government gets tougher on problem debts. Another report suggested last week that Mizuho would speed up bad-loan writeoffs to 1 trillion yen ($8.2 billion) next business year. (Full story) The government is pushing to clean up $400 billion in bad loans in the financial system. Financial Services Minister Heizo Takenaka released his first report on the issue last week, in a version that was criticized as watered down. (Full story) First to trim worker wagesBut the bank plan does call for banks to use stricter accounting standards and suggests study of whether to change the way they measure tax-deferred assets. (Plan is unveiled) Mizuho would be the first bank to trim its workers' wages if it goes through with the measure. Its full restructuring plan is due to come out with its half-year profits later this month. But the other banks may consider similar measures. Previously the big banks had only cut the pay of top executives, not the whole workforce. The bank already plans to slash 5,000 jobs to bring total employment to 25,000 by fiscal 2005. According to the Yomiuri report, the bank now plans to push cuts through by the end of fiscal 2003, with 8,000 jobs to go in all. Mizuho is also trimming its number of bank branches. It plans to cut the number of branches to less than 460, from 578 at the start of the business year on April 1. Mizuho may also speed up transfers to subsidiaries, offer increased voluntary retirement, and force staffers at subsidiaries to retire two years earlier than previously mandated. Mizuho stock dropped 2.15 percent to 182,000 yen on Friday, after sinking to a record low of 150,000 yen in October. Japan's stock markets are closed Monday for the Culture Day holiday.
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