TOKYO (Thomson Financial) - Japanese credit card firm Mitsubishi UFJ Nicos Co Ltd is expected to post a net loss of 100 billion yen in the current year to March 2008 due to restructuring efforts involving a 40 percent cut of its workforce, the Nikkei reported on Thursday.
The figure is a reversal from the company's estimate for a net profit of 15.5 billion yen.
Under a plan to be unveiled today, Mitsubishi UFJ Nicos, which employs around 5,500, plans to cut 2,400 jobs, through early retirement offers, natural attrition and other measures, the business daily said, without citing sources.
Mitsubishi UFJ Nicos will be delisted and become a wholly owned subsidiary of Mitsubishi UFJ Financial Group Inc as early as next summer, Nikkei said. MUFG held 65.5 percent of the credit card firm's outstanding stock as of April 1.
Mitsubishi UFJ Nicos will issue this year 120 billion yen worth of new shares to MUFG through a private placement, according to the report.
(1 US dollar = 116.01 yen)
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