TOKYO -- Fuji Heavy Industries Ltd. plans to cut 5 percent of its work force, or 700 employees, by next March in an effort to turn itself around, the Nihon Keizai business daily reported on Monday.
The maker of the Subaru brand, which has about 14,000 workers, will launch its first voluntary retirement program by the end of this month, aiming to slash annual personnel costs by 5 billion yen ($42 million), the paper said.
A Fuji Heavy spokesman denied to comment.
The automaker last month cut its full-year net profit forecast by 20 percent to 12 billion yen and said it would dissolve its ties with General Motors, while Toyota Motor Corp. would take an 8.7 stake in it.
The job reductions will be the company's first since it was established in 1953, the paper said.