TOKYO: Japanese industry leader MUFG Bank expects to shed an additional 2,000 jobs by fiscal 2023 by stepping up its structural reforms through further digitization, informed sources have said.

The number adds to 6,000 jobs that the bank aims to slash by the same year under a plan disclosed in November 2017. A reduction of 8,000 jobs would push down the bank's workforce by 20 pct from some 40,000 as of fiscal 2017.

The core arm of Mitsubishi UFJ Financial Group Inc. expects that the workforce cut will be achieved by curbing the employment of new graduates because many existing employees are set to reach the mandatory retirement age in coming years.

Banks in Japan face headwinds from protracted superlow interest rates and stiffer competition from new entrants to the industry.

MUFG Bank aims to reduce the workload equivalent to 9,500 jobs by fiscal 2023. It hopes to improve its profitability by accelerating the automation of business operations through artificial intelligence and other technologies.

The bank will also speed up structural reform measures, including the conversion of conventional outlets offering full-line financial services into ones specializing in some services.

In fiscal 2021, the bank will hire 400 new graduates, down 22 pct from the previous year.

JIJI Press