Japanese financial service giant Mizuho has set out a ten-year blueprint to downsize its branch network and cut swathes of jobs as it prepares for a long-term battle to retain its dominant position in an age of new competition and low-cost technology.
The Japanese mega-bank says it will cut 19,000 jobs over the next ten years, reducing its workforce from 79,000 today to 60,000 positions by 2027. It also plans a cull of its high street branches, shutting down 100 locations from its 500-strong network. IT systems across the group will additionally be streamlined.
In a presentation of Q2 financial results, the bank cites "rapid and overwhelming" technology development and a difficult business environment for the need to slash costs.
"While the One Mizuho strategy focusing on meeting customer needs is performing well, Mizuho’s earnings are experiencing a declining trend," the bank states. "Reinforcement of expense control and earning power are necessary."
The ten-year strategic plan is the outcome of a 'Strutural Reform Taskforce' set up by the bank in April
Speaking to reporters, CEO Yasuhiro Sato said Mizuho is "very alarmed by the prospect of new entrants overrunning traditional banking operations like remittances and payments".