IBM Japan Ltd is expected to make permanent what now is a temporary early retirement programme for employees over 50, the company said. Implemented in November 1992 to cut costs, the voluntary programme gave employees who agreed to retire early full retirement benefits, 18 months extra pay and guaranteed employment until 65 if they moved to affiliates – that deal gives nominal promotion in return for a salary cut. The scheme was to have ended last month but Employees who couldn’t join the original programme said they wanted it continued for them, the company said. More than 1,600 of the 3,000 employees eligible for the temporary programme opted to participate. IBM Japan, which employs 25,000, is in danger of plunging into the red this year.
