IHI Cuts 1,200 Jobs

Ishikawajima-Harima Heavy Industries Co. Ltd. (IHI) will cut its work force by 1,200 from the current 13,200 by the end of March 2001. A spokesman said the company plans reduce its 560 administrative staff by 30 percent, including those in finance and general affairs. The comprehensive heavy machinery manufacturer will focus on aerospace, environment protection equipment, logistics and other areas which have large potential for growth, he said. In August, IHI lowered its group net forecast for 1999/2000 to a loss of seven billion yen from a profit of five billion yen. The downward revision was due mainly to losses from its plant engineering business overseas as well as the yen's strengthening. It hopes to return to profitability in the following business year through restructuring and cost reduction.