ADK implements the Early Retirement Plan
ADK announced today that Board of Directors Meeting held in August 12, 2013 passed a resolution on the early retirement plan as follows.
1. Reasons to implement the early retirement plan
The business condition in the advertising market continues to be very challenging. ADK will promote a structural reform to ensure the foundation for its new management vision as well as its new business plan with a prospect of medium and long-term growth while tackling with a decline of profitability impacted by ever intensified competition and rapid structured change of the market. As part of corporate efforts, we have decided to implement the early retirement plan combined with outplacement support.
2. Outline of an early retirement plan
- Subject employees: Those who have worked at ADK for five years and more, and are aged between 40 and 59 years old
- Subject number: 130 out of the total employees of 1961 as of June 30, 2013
- Application period: Tuesday, September 24, 2013 to Friday, October 4, 2013
- Date to leave the Company: Saturday, November 30, 2013
- Preferential treatment: The Company pays early retirees a special retirement allowance as well as offers outplacement support for a career change.
On assumption that all 130 will leave as planned, extraordinary loss amounted to 2.7 billion yen is expected to incur including the payment of special allowance. Cost reduction of this implementation for the following year will be 1.3 billion yen annually. In accordance with this initiative, ADK has revised 2013 business performance. Please refer to an announcement, also released today, titled ‘ADK announces the revised forecast on 2013 Business Performance’ for the detail.