Mitsubishi UFJ Financial Group is considering shrinking its workforce by about 10,000 positions over a decade as low interest rates and intensifying competition squeeze profit, people with knowledge of the matter said.
Bloomberg News reports that the total is more than double the 3,500 full-time roles that President Nobuyuki Hirano last year said MUFG would eliminate from its main banking unit through natural attrition and less hiring, the people said, asking not to be identified because the plans are private. The deeper reduction represents about 7 percent of the bank’s 147,000 staff worldwide and illustrates how Japan’s largest bank is struggling with an increasingly challenging business environment.
MUFG is seeking to reshape itself by closing branches and boosting technology investment -- a strategy that peers at home and abroad are also pursuing as digital advancements transform the financial industry and provide an opportunity to save costs. Japanese banks are finding it harder to make money from lending as the central bank’s negative-rate policy erodes margins and a shrinking population curtails credit demand.
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