For the first time since its foundation, Mitsubishi UFJ Financial Group, Inc. is planning to lay off about 10,000 employees. The news was reported by Bloomberg, citing people familiar with the matter.
Most of the headcount reduction is expected to take place in Japan over a period of 10 years. The Tokyo-based bank is planning such a major restructuring move to cope with the challenges prevailing in the Japanese economy. Central bank’s negative interest rate policy and intense competition is keeping the Japanese banks under pressure, leading to a fall in profits.
Mitsubishi is aiming to deal with these problems by shutting down its branches and also investing more in digital initiatives. These steps are expected to help it overcome higher costs and compete with its peers.
A couple of U.S. banks that are also cutting jobs to combat escalating expenses are Bank of America Corporation (BAC - Free Report) and Wells Fargo (WFC - Free Report) . On the other hand, Deutsche Bank AG (DB - Free Report) is hiring employees in order to boost its wealth management unit.
While Mitsubishi’s performance is affected by increasing expenses and negative rates, it benefits from global expansion plans and a strong liquidity position. We also remain encouraged by its capital strength.
Shares of the company have gained 39.1% over the last one year, outperforming the Zacks categorized Banks - Foreign industry’s rally of 23.5%.
Mitsubishi’s earnings estimates for the current year remained stable over the last 60 days. The stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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For the first time since its foundation, Mitsubishi UFJ Financial Group, Inc. is planning to lay off about 10,000 employees. The news was reported by Bloomberg, citing people familiar with the matter.
Most of the headcount reduction is expected to take place in Japan over a period of 10 years. The Tokyo-based bank is planning such a major restructuring move to cope with the challenges prevailing in the Japanese economy. Central bank’s negative interest rate policy and intense competition is keeping the Japanese banks under pressure, leading to a fall in profits.
Mitsubishi is aiming to deal with these problems by shutting down its branches and also investing more in digital initiatives. These steps are expected to help it overcome higher costs and compete with its peers.
A couple of U.S. banks that are also cutting jobs to combat escalating expenses are Bank of America Corporation (BAC - Free Report) and Wells Fargo (WFC - Free Report) . On the other hand, Deutsche Bank AG (DB - Free Report) is hiring employees in order to boost its wealth management unit.
While Mitsubishi’s performance is affected by increasing expenses and negative rates, it benefits from global expansion plans and a strong liquidity position. We also remain encouraged by its capital strength.
Shares of the company have gained 39.1% over the last one year, outperforming the Zacks categorized Banks - Foreign industry’s rally of 23.5%.
Mitsubishi’s earnings estimates for the current year remained stable over the last 60 days. The stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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