F-Tech Announces Staff Rationalization Plan for China Subsidiaries Involving About 500 Employees

TOKYO, Aug 03 (Pulse News Wire) – F-TECH Inc. (7212.T) announced plans to rationalize staffing structures at its two Chinese subsidiaries, Weifu Keji Industry (Zhongshan) Co., Ltd.

And Weifu Keji Industry (Wuhan) Co., Ltd., involving approximately 500 employees. The decision was made during a board meeting held on August 03, 2026. The move comes amid changes in the Chinese automotive market, characterized by shifts towards electric vehicles and evolving competitive environments. Due to reduced production volumes from key customers, there has been a divergence between current production capacities and workforce sizes. As part of efforts to improve profitability and rebuild operational foundations within the group's Chinese operations, F-TECH decided to implement staff reductions through voluntary agreements.

The recruitment period for employee departures will run from August 3, 2026, to August 19, 2026 for Zhongshan subsidiary and from August 18, 2026 to August 31, 2026 for Wuhan subsidiary. All selected employees are expected to retire by August 31, 2026. Regarding future outlook, the company anticipates recognizing expenses related to special severance payments in its consolidated earnings forecast for the fiscal year ending March 2027. While preliminary estimates have been incorporated into the projected performance figures, adjustments may be necessary based on final application outcomes and payment levels. Any significant revisions will be promptly communicated to stakeholders.