The Osaka pharmaceutical company Taiko Pharmaceutical, which was pointed out by the Consumer Affairs Agency over the display of advertisements for its main products, decided to recruit more than 10% of all employees who wish to retire due to the deterioration of business performance.
According to the announcement, Taiko Pharmaceutical will recruit about 30 voluntary retirees, which is more than 10% of all employees, from the middle of next month.
This applies to employees aged 40 to 59 as of the end of July.
At the company, sales declined due to the impact of being pointed out by the Consumer Affairs Agency over the display of advertisements for its main product, "Kleberin," and the final profit and loss reached a record high of 9.5 billion yen in the last year's financial results. In addition, the business situation continues to be severe, with the final deficit of 1.7 billion yen even in the three-month settlement of accounts until the end of March.
For this reason, we are working to reduce costs, such as by reducing management compensation, but the company has decided that it is necessary to further reduce labor costs for this decision.
Employees who apply for voluntary retirement will be paid a premium severance pay, and will also be provided with support for reemployment.
Taiko Pharmaceutical says, "There is a limit to how much we can reduce costs, and we are sorry for our employees, but we would like to respond in good faith."