Isuzu Says It Will Cut Personnel Costs by 730 Million Dollars

TOKYO, Nov 26 Reuters reported that Isuzu Motors Ltd, Japan's largest maker of light trucks, said on Monday it would cut personnel costs by around 90 billion yen ($730.4 million) by March 2004, which should be the equivalent of 3,200 to 3,300 more job cuts.

Isuzu in spring already announced plans to slash 9,700 jobs by March 2004 as part of a three-year restructuring plan. With the additional job cuts, it would be reducing its 38,000-strong workforce by more than 30 percent.

A spokesman at Isuzu, 48.4 percent owned by General Motors Corp , said the final figures for the job cuts will be announced later in the day when it announces its results for the half-year ended in September.

Last month, Isuzu forecast a smaller-than-expected group current loss for the period on the back of favourable currency rates and cost-cutting efforts.

Current profit is pre-tax and includes gains and losses on securities investments and non-operating activities, but excludes extraordinary items.

But Isuzu's 2001 North American sales of sport-utility vehicles are expected to fall about 20 percent short of the targeted 110,000 units due to intense competition, and the truckmaker will revise downward its 2003/04 estimate of new car sales in North America by some 20 percent, the Nihon Keizai Shimbun said on Monday.

The newspaper also said that more than 2,000 of the new job cuts will take place at the parent company, while 600 will come from domestic sales units and 300 will come from U.S. marketing units.

Other reductions will include workers who leave the company after reaching the mandatory retirement age, and Isuzu will likely introduce an early retirement programme and other measures to support its workers, it said.

($1 equals 123.22 Yen)