In 2023, SmartNews carried out layoffs affecting more than 200 employees and a voluntary retirement program to reduce total personnel costs by approximately 40%. Since Hamamoto Kaisei (浜本階生) became the new CEO, the company has been pursuing initiatives including organizational restructuring and the rollout of paid services.
In January 2023, SmartNews decided to reduce total personnel costs, including those at its overseas offices, by 40%. The plan involved layoffs affecting a little over 200 employees and a voluntary retirement program, and participants raised a succession of questions at the briefing session. Hamamoto Kaisei (浜本階生) described the decision at the time as “the most painful decision imaginable.”
As demand for COVID-19 information increased, the company rolled out a succession of new services, including a COVID-19 information map and a vaccine channel. To support its rapid growth, it stepped up hiring in engineering, marketing and advertising sales, and its headcount approximately doubled over the 2 years from 2021.
As growth slowed, improving its cost structure alone was insufficient, and a large-scale review of its organizational structure, including personnel cost reductions, became necessary, leading management to carry out layoffs. This resulted in a review of the dual-leadership structure, with Hamamoto Kaisei (浜本階生) becoming the new CEO.
Under the new structure, the company launched the paid news service SmartNews+ as a source of revenue. The service received a stronger-than-expected response, with subscribers surpassing 10,000 within 1.5 months of its launch. The company also strengthened its partnership with NTT DOCOMO and began offering SmartNews for docomo. The service has reportedly performed well, with dアカウント linkages surpassing 2 million in 3 months.
Going forward, the company is reportedly exploring a new growth strategy through the expansion of paid services and corporate partnerships, while resuming recruitment and rebuilding its organization.