The complexity is no greater in Japan than it is elsewhere, Harnick says. But cultural differences play a role. “In Japan, there is a long-standing tradition and business practice where large corporations don’t like to be seen downsizing” or cutting jobs, he notes.
At Mitsui, for example, no employee will be laid off when the phenol, acetone, and polyurethane facilities cease to operate, Tannowa says. Laying off employees, he explains, is impractical both financially and in terms of the harm it does to labor relations. “It is not wise to conduct such layoffs,” he says. The 200 or so employees affected will be redeployed, and Mitsui will lower its headcount over the coming years through natural attrition.I wonder at what point US companies transitioned from "we're closing your division, but transferring you elsewhere" to "see ya later." I don't think we're going back.