KIOXIA Holdings, a global leader in storage semiconductors, has decided to offer early retirement for the first time since the company's inception amid continued deterioration in business performance due to falling demand.

According to KIOXIA Holdings, the company proposed to the union on March 21 that employees over the age of 56 working in Japan be offered early retirement.

This is the first time the company has offered early retirement since its inception in 2017 as its predecessor, Toshiba Memory.

KIOXIA, a global leader in memory semiconductors called flash memory, posted a final loss of 1.1381 billion yen in the one-year financial results of the previous fiscal year due to shrinking corporate IT investment and a decrease in orders for smartphones, and a final loss of 4.6 billion yen in the three-month period from April to June.

In response to the deterioration of the global market, we have continued to reduce production since October last year, and we have also decided to postpone the new plant in Kitakami City, Iwate Prefecture, which was scheduled to start operations by the end of this year, to next year or later.

The company says that the implementation of early retirement is not aimed at reducing the number of employees.

Employees who apply will receive additional severance pay and support for reemployment.