Japanese steelmaker JFE Steel Corp., the third largest steel company in the world, has announced its plans to reduce workdays beginning in June, in a move that will affect 13,000 employees.
Accordingly, the core JFE Holdings will add two days off a month for nearly all operations, with workers to receive 80 percent of their regular pay on those days. The cuts will be applied to production sites, including the steel works in the Chiba and Okayama prefectures, as well as the related divisions.
Although sales operations are excluded, the work reduction covers 90 percent of the company's personnel from department head level down.
Both JFE Steel and the holding company have lowered executive compensation starting in May, with cuts of 10 percent for directors and internal auditors and seven percent for corporate executive officers. Earnings-linked bonuses for management have been shaved by an additional 3-5 percent.