While Japanese banking giant Mizuho is transforming operations through fintech solutions, it is also preparing severe job cuts.
Mizuho is planning to shed as many as 19,000 employees in Japan and overseas over 10 years. The cuts will account for one-third of its entire labour force, a source familiar with the matter told the Kyodo news agency.
The job reduction by one of Japan's mega bank groups is in line with its cost-cutting measures at time when it has been struggling due to low interest rates and the growing influence of nonbank financial technology financial services.
The source said the group's total workforce is now expected to be reduced from currently around 60,000 to 40,000. Mizuho is also unlikely to solicit applicants in Japan for early retirement, according to the source.
More to Follow
Other Japanese banks are also considering serious cuts their staffing levels. Sumitomo Mitsui Financial Group is planning to use information technology in order to reduce the volume of administrative work, which could see a reduction of 4,000 employees.
Likewise Bank of Tokyo-Mitsubishi UFJ is working on a large reduction in its volume of administrative work that could see up to 30 percent of the bank’s domestic workforce or 9,500 employees, ditched through the growing use of artificial intelligence (AI) and other technology.
