Recognition of losses resulting from rationalization measures, including workforce reductions, in connection with organizational changes
TSUBAKI NAKASHIMA CO.,LTD. (the filing company)
Organizational silos under the business unit structure fragmented decision-making, while the complex organizational structure resulted in structural inefficiencies, including delays in communication and response. In addition, customer needs have been tending to shift from regional optimization to global optimization.
Costs of approximately ¥500 million are expected to be incurred in the current fiscal year. The costs will be recognized as expenses and are expected to be offset by cost savings of approximately ¥500 million.
Fiscal year ending December 2026
The impact on consolidated results for the fiscal year ending December 2026 will be immaterial.
The organizational change is scheduled to be implemented on 8 June 2026. The affected employees will leave the company in stages by the end of December 2026. Going forward, the company will operate around 4 core functions: sales and marketing, manufacturing and supply chain, finance, and human resources.
| Item | Details |
|---|---|
| Event name | Recognition of losses resulting from rationalization measures, including workforce reductions, in connection with organizational changes |
| Date of occurrence | 2 June 2026 (the date on which the Board of Directors resolved the organizational change) |
| Subject Entity | TSUBAKI NAKASHIMA CO.,LTD. (the filing company) |
| Cause | Organizational silos under the business unit structure fragmented decision-making, while the complex organizational structure resulted in structural inefficiencies, including delays in communication and response. In addition, customer needs have been tending to shift from regional optimization to global optimization. |
| Amount of Impact on Business Performance | Costs of approximately ¥500 million are expected to be incurred in the current fiscal year. The costs will be recognized as expenses and are expected to be offset by cost savings of approximately ¥500 million. |
| Accounting period in which recognized | Fiscal year ending December 2026 |
| Impact on Earnings Forecast | The impact on consolidated results for the fiscal year ending December 2026 will be immaterial. |
| Outlook | The organizational change is scheduled to be implemented on 8 June 2026. The affected employees will leave the company in stages by the end of December 2026. Going forward, the company will operate around 4 core functions: sales and marketing, manufacturing and supply chain, finance, and human resources. |
Items this document does not state (17)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.To simplify the organization, reduce the number of management layers and administrative costs, and accelerate decision-making. Under the former business unit structure, organizational silos and a complex structure caused delays in decision-making and communication, while customer needs have been tending to shift from regional optimization to global optimization.