Sumitomo Heavy Industries, Ltd.
Announcement Regarding Implementation of Voluntary Retirement Incentive Program
In fiscal 2026, a voluntary retirement incentive program will be implemented targeting a workforce reduction of approximately 500 employees within the domestic group. Costs related to additional payments are expected to be 2.5 to 3 billion yen, with an anticipated annual cost reduction effect of 5 billion yen.
Key Figures
- Workforce Reduction Scale: Approximately 500 employees (entire domestic group)
- Expected Additional Payment Costs: 2.5 to 3 billion yen (one-time cost expected to be recorded in fiscal 2026)
- Annual Cost Reduction Effect: 5 billion yen (annualized)
AI要約
Background and Purpose of the Voluntary Retirement Incentive Program
Sumitomo Heavy Industries, Ltd. has decided to implement a voluntary retirement incentive program across the entire group, including some domestic subsidiaries, as part of its “Mid-Term Management Plan 2026.” This is to promote portfolio reform and concentrate management resources on high-growth business areas. Eligible employees are those aged 55 to under 65 with at least three years of continuous service. Recruitment will begin in early April 2026, with retirement effective May 31, 2026. This initiative aims to transform the human resource portfolio, invigorate the organization, and accelerate business structure reform.
Estimated Costs and Future Outlook
One-time costs such as additional payments related to this measure are expected to be recorded in fiscal 2026 between 2.5 and 3 billion yen. On the other hand, an annualized cost reduction effect of approximately 5 billion yen is anticipated, contributing to improved profitability and organizational efficiency in the medium to long term. Voluntary retirees will receive additional payments according to age on top of regular retirement benefits, and support services for career transition will be provided.
