NTT to cut 21,000 jobs at NTT East, NTT West.
Nippon Telegraph and Telephone Corp. (NTT) said Wednesday it will cut about 21,000 jobs at its two main group companies by March 2003 and freeze new hiring at the companies for two years from April 2001.
NTT said it plans to cut 10,000 jobs at Nippon Telegraph and Telephone East Corp. (NTT East) and 11,000 jobs at Nippon Telegraph and Telephone West Corp. (NTT West) through attrition and the transfer of 4,000 employees to other group companies under a midterm restructuring program.
NTT East currently has 60,000 employees and NTT West 68,000.
The hiring freeze at NTT East and NTT West will be the first of its kind since NTT was privatized in 1985.
NTT said the job retrenchment will bring its group workforce to 107,000.
The restructuring program also calls for reducing the number of sales outlets nationwide by two-thirds and cutting annual capital spending by the two companies by 300 billion yen from 1,300 billion yen for three years from fiscal 2000.
NTT said it expects the restructuring to save 160 billion yen at NTT East and 190 billion yen at NTT West in fiscal 2002.
NTT East and NTT West are two of the three companies created last July as a result of a sweeping reorganization to make NTT a holding company.
NTT is faced with growing demand from new common carriers and overseas telecom operators to cut charges for access to its local phone lines.
On condition that the charges remain unchanged, NTT estimated the announced operational rationalization will help NTT East chalk up a pretax profit of 100 billion yen in fiscal 2002. NTT West is forecast to see a pretax profit of 30 billion yen in fiscal 2002.
Explaining the restructuring plan at a press conference, NTT President Junichiro Miyazu said NTT is set to cope with great changes in the communications service market such as increasing use of the Internet.
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|Comment:||NTT to cut 21,000 jobs at NTT East, NTT West.|
|Date:||Nov 22, 1999|
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