The Widening Recession and Layoffs

Triggered by the subprime mortgage crisis in the fall of last year (2007) – essentially, a collapse of the

Not only are non-regular employees cast out into the cold, but even regular employees are being asked to take temporary leave, and the severity of the situation only continues to grow.
The performance decline of Toyota, a global giant representing Japan, is particularly astonishing. Let's look at the numbers: the company is causing a stir by projecting a consolidated operating loss of 150 billion yen for the fiscal year ending March 2009 (the current fiscal year).

Let's Take Toyota as an Example

Consolidated operating profit or loss refers to the profit or loss generated from the operating activities of the entire group, including its subsidiaries.
It is calculated by subtracting costs such as raw materials and labor from consolidated sales revenue.
What we should note here is Toyota's consolidated operating profit for the fiscal year ending March 2008, just one year prior.
To your surprise, the company recorded a staggering profit of 2.2703 trillion yen. With a lead of nearly 1 trillion yen over NTT, the second-ranked company, Toyota’s performance truly showcased its status as the world's number one.
Yet, in the current fiscal year, just one year later, this has reversed into a mere 150 billion yen deficit, leading to pronouncements of "This is a crisis!"

Voices of "Overreaction" Emerge

Among experts, there are indeed voices calling it an "overreaction." While the phrasing may not be entirely appropriate, it seems to carry a sense of something less than genuine.
As evidence, the company expects to achieve a profit of 50 billion yen in the current fiscal year if dividends received and profits from subsidiaries and affiliated companies are accounted for.
Furthermore, the company paid out a substantial 140 yen per share in dividends in the previous fiscal year. For the current fiscal year, management's policy is to decide after assessing the situation. Viewed in this light, the sense of crisis appears to be leading to an overreaction. The same can be said for other major corporations.

The "Lifetime Employment System," a Valued Japanese Employment Practice

While I understand the challenges of management, I believe that prioritizing the reduction of labor costs and resorting to layoffs and dismissals of temporary workers should not be done lightly.
We must never forget that the single greatest reason for Japan's economic recovery from the ashes of the post-war period to its current state lies in the Japanese "lifetime employment system." Young people entering the workforce all believed it was "a lifelong career for a man" and dedicated themselves to their work.
Management treated employees with a sense of family. This loyalty to the company directly contributed to improved corporate performance. It is clear that a system of rewards based on results and achievements, as seen in America, is not suited to Japan's cultural climate.
We hope that management will once again embrace the traditional Japanese approach of sharing both hardships and joys.