Seiyu, the Japanese retailer in which Wal-Mart owns a majority share, has reportedly announced major job cuts and raised its loss forecast for the current year.
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According to a Reuters report today (18 September), Seiyu is to cut around 7% of its workforce as it attempts to address sluggish sales and stiff competition.
The company, which operates 393 supermarkets in Japan, also revised its guidance on its expected annual loss, which it expects to reach JPY10.4bn (US$90.1m), Reuters said.
In August, Seiyu said it expected to record a net loss of JPY5.9bn for the 2007 fiscal year. However, operating profit and sales forecasts have been left unchanged.
With Seiyu heading for its sixth consecutive annual loss, speculation has grown that Wal-Mart may consider offloading its 53.6% share in the business.
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By GlobalDataSeiyu is to offer early retirement to 450 employees, with cuts focused on personnel at its head office. The company, which employs a total of 6,500 people, said there are currently no plans to close stores.
