In line with a comprehensive corporate restructuring initiative, Japanese multimedia giant Kadokawa Corporation revealed in May its intention to offer early retirement to a certain number of employees aged 45 and above who have completed at least 5 years of service. The proposal, made in June, includes additional perks such as an improved severance package and optional assistance for finding new employment opportunities.
As GameBiz reported last week, Kadokawa has now shared the outcomes of this program: 154 individuals accepted the offer, leading to projected severance expenses of 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 plans to document this expenditure as an extraordinary loss in its financial statements for the first quarter of its current fiscal year.
Despite the initial financial outlay, Kadokawa anticipates that the workforce reduction achieved through this measure will significantly lower annual personnel expenses by up to 1.7 billion yen (around $10.6 million USD). For the remainder of the ongoing fiscal year concluding in March 2027, the company expects a savings of 1.1 billion yen (about $6.8 million USD). This indicates that the cost savings should counterbalance this year’s substantial investment by the end of the decade.
Kadokawa has faced multiple challenges this year, including slipping revenues in the publishing sector attributed to an oversupply of isekai works, and allegations of breaching the Freelancers Protection Act. Moreover, the company has been under considerable pressure from overseas activist investors. Most recently, Hong-Kong based investment firm Oasis Management has been actively acquiring Kadokawa’s shares, currently holding a 15.25% stake as its principal shareholder, and has already made moves to remove its CEO.