Mitsubishi UFJ to axe 1,000 jobs, shut 50 branches: WSJ

Japanese banking major Mitsubishi UFJ Financial Group Inc today said it is planning to close 50 branches and slash 1,000 jobs over the next three years, a media report says.

According to a report by the Wall Street Journal, the biggest bank of Japan in terms of assets, is planning to reduce headcount and shut down about 50 branches over a period of three years as part of its ongoing effort to cut costs.

"The plan for its core banking unit Bank of Tokyo- Mitsubishi UFJ, includes shutting down at least 200 automatic teller machines," the WSJ report published online stated.

WSJ report added, MUFG has stopped short of laying off people and would instead eliminate 1,000 jobs through natural attrition and move another thousand into new positions within the group.

The daily pointed out that laying-off of people in Japan is extremely difficult because of the tough labour laws protecting staff and public pressure on companies to preserve social stability. However, many Japanese companies have laid off people in recent months because of the sharp downturn in the country's economy.

Shares of Mitsubishi UFJ were trading up 4.70 per cent at 512 yen in the late afternoon trade at the Tokyo Stock Exchange.