PCCW Japan to chop jobs in half
By Mariko Ando, CBS.MarketWatch.com
Last Update: 5:42 AM ET Mar 30, 2001
TOKYO (CBS.MW) -- Pacific Century CyberWorks Japan, the Japanese unit of Hong Kong's embattled Internet conglomerate run by young tycoon Richard Li, announced Friday that it will reduce the company's workforce by half amid a business slowdown.
PCCW Japan plans to reduce its total workforce to 150 from the current 300 by offering a voluntary retirement package.
The company is expected to book a charge of some 550 million yen ($4.4 million) due to the job cuts, the company said in a statement.
PCCW Japan, the wholly owned subsidiary of Hong Kong's Pacific Century CyberWorks (PCW: news, msgs, alerts) , also plans to close all five of its amusement parks in Tokyo by the end of April.
"We aim to be more profitable by reducing the company's size and shifting our focus to more profitable businesses, such as online gaming," said Takamitsu Takamatsu, a spokesman for the company.
Today's announcement came after PCCW Japan's parent posted worse-than-expected financial results on Wednesday in Hong Kong. On Friday in Hong Kong, CyberWorks' shares tumbled 5.4 percent to close at 3.075 Hong Kong dollars, extending Thursday's six percent plunge. Shares have plummeted over 90 percent from its peak.
Mariko Ando is a Tokyo-based reporter for CBS MarketWatch.com.
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