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Fullcast Holdings Co. Ltd., a Tokyo-based staffing firm, announced Thursday plans to close or combine 30 offices, reduce headcount by 350, cut pay and sell two subsidiary companies.
"The recruitment industry has been experiencing severe difficulties, attributable to the economic contraction that has prompted companies to downsize their workforces, for instance by canceling or opting not to renew worker dispatch contracts," the company said.
Fullcast expects the office closures and staff reductions to result in charges of 708 million yen (US$7.1 million).
The company will offer voluntary retirement packages as part of the plans to reduce staff.
Fullcast's planned pay cuts will be 10% of base salary for corporate executives, 8% for employees in management positions and 5% for regular employees.
Subsidiaries to be sold are Fullcast Technology Co. Ltd., which provides engineering outsourcing, and Net it works Inc., a network and information technology solutions business.