TOKYO -- Namco Bandai, looking at a $343 million net loss for the fiscal year ending March 31, said it would reduce its workforce by 630 jobs.
Revenue for the nine-month earnings period ended Dec. 31, 2010, dropped to $3.13 billion, or 10.4%, compared with the same period a year ago. Officials termed the projected loss "extraordinary." | SEE FINANCIAL REPORT
Namco officials said they would implement a "Restart Plan" that consists of streamlining operations in several divisions, including its Japanese arcade chain. Ten of the lowest-earning arcade venues are expected to close within the next 12 months.
The plan also includes breaking up game design and other functions into smaller, independent groups under the company umbrella, and launching new products aimed at preteens.
Additionally, Namco Bandai's parent company, Namco Bandai Holdings, announced it will cancel up to 12% of its own shares. Executives said Namco will buy back about 66% of them, or $244 million worth, from shareholders. They will then be retired, along with 10 million shares already owned by the company.