Mitsubishi UFJ streamlines operations, to cut 1,000 jobs

However, a company spokesman denied that the cuts were a consequence of the global crisis. He stated that "This is part of our efforts to streamline our operations in order to maximize the effect of our merger."

The company’s reorganization follows its report of a net loss for the October-December quarter last year. It plans to shut about 50 more branches, close 200 ATMs, cut 1,000 jobs through erosion and relocate 1,000 employees.

The company spokesman Takashi Miwa disclosed that it has already closed 70 branches and now operates about 670 outlets. The bank has already closed some 200-300 ATMs since the merger in January 2006 between the Bank of Tokyo-Mitsubishi and UFJ Bank.
The bank will shed the jobs through retirement and by cutting back in the hiring process. MUFG main banking unit had about 600 branches with a workforce of about 78,300 at the end of the last business year. The job reductions will take place at the bank's head office, which has about 6,000 workers. The move will lower the manpower at the main office by a third.

Credit Suisse analyst Shinichi Ina said, "The bank just finished its system integration in December, so it is understandable that it still has some more overhaul to do (after the merger).

"Since the economic environment is different now from when it merged, I'm sure it is making an adjustment (in its restructuring progress) accordingly ... but this does not seem like anything out of the ordinary."

The bank, which bought a segment of Morgan Stanley last year, lost 42 billion yen (437 million dollars) in the nine months to December, hit by the sagging stock markets and the credit crunch.

Shares of MUFG jumped 4.7 percent to 512 yen on the Tokyo Stock Exchange after the news.