In line with a wider corporate reorganization plan, Japanese multimedia giant Kadokawa Corporation revealed in May its intention to provide early retirement options to a certain number of employees aged over 45 with at least five years of tenure, starting in June. The package includes supplementary benefits such as an improved severance payment and optional assistance for finding new employment.
As GameBiz reported last week, Kadokawa has now shared the outcomes: 154 individuals accepted the offer, leading to projected severance expenses totaling 5.4 billion yen (approximately $33.6 million USD). Those who opted for early retirement are scheduled to depart from Kadokawa by July 31st.
The corporation intends to classify this expenditure as an extraordinary loss in its financial statement for the first quarter of the current fiscal year.
Although the initial outlay is significant, Kadokawa forecasts that the workforce reduction will substantially cut annual personnel expenses by up to 1.7 billion yen (around $10.6 million USD). The remainder of the ongoing fiscal year, concluding in March 2027, is expected to see savings of 1.1 billion yen (about $6.8 million USD). This suggests that the cost savings should balance out this year’s considerable investment by the end of the decade.
Kadokawa has faced multiple challenges this year, including slumping revenues in the publishing sector attributed to an excess of isekai works, and the supposed breach of the Freelancers Protection Act. Additionally, the company has been under intense scrutiny from overseas activist shareholders. Most recently, Hong-Kong investment firm Oasis Management has been actively acquiring Kadokawa’s stock, currently holding a 15.25% share and serving as the company’s top stakeholder, having already attempted to remove its CEO.
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