Mizuho confirms mass layoffs plans due to increased technology use
Mizuho confirms that about 19,000 jobs will be gone by March 2027 as the bank seeks to increasingly utilize novel technologies to streamline work processes.
Japan’s Mizuho Financial Group, Inc. (TYO:8411) has earlier today posted its financial results for the quarter to September 30, 2017, with the report providing some dismal news for the bank’s employees, as thousands of jobs are to go during the next 10 years due to the increased use of novel technology solutions. Today’s announcement by Mizuho confirmed earlier reports about the plans for mass layoffs at the bank.
Mizuho said today that it will shed 19,000 jobs by March 2027. The workforce of the bank comprised approximately 79,000 people in March 2017, the bank explains. The layoffs are in tune with the bank’s business strategy which envisages streamlining of work processes via the increased use of new technology solutions.
The growing use of new technologies will also lead to the closure and/or merger of Mizuho’s branches in about 100 locations in Japan. This change should be completed by March 2025. The aim of the bank is to create an omni-channel network that will correspond to the next-generation finance industry model and will provide extra customer convenience thanks to the deployment of novel technologies.
Mizuho has been actively adopting such novel tech solutions recently. In September this year, for instance, J.Score, a joint venture of SoftBank Group Corp (TYO:9984) and Mizuho Bank, was launched. J.Score offer loans tailored to the specific needs and life style of each consumer by harnessing the power of artificial intelligence. In fact, an AI technology will be responsible for the calculation and analysis of a special score assigned to each potential borrower.
The plans of Mizuho concerning its human workforce are in line with those unveiled by another Japanese banking giant – Mitsubishi UFJ Financial Group Inc (TYO:8306), earlier this year. MUFG’s President Nobuyuki Hirano said in September that 9,500 jobs will be automated in Japan. These jobs account for about 30% of the headcount nationwide at MUFG’s main subsidiary, Bank of Tokyo-Mitsubishi UFJ.
MUFG’s decision was dubbed as an effort to boost productivity. Mr Hirano emphasized that the company will move employees who have been engaged in relatively simple work into more creative roles through retraining and other measures.
