Notice Regarding Results of Implementation of Special Early Retirement Program and Recognition of Extraordinary Loss

Kadokawa Corporation has concluded its special early retirement program, which targeted employees aged 45 or older with at least five years of tenure. The initiative, which ran throughout June 2026, resulted in 154 employees opting for voluntary departure. This restructuring effort is designed to optimize the company's workforce composition and reduce long-term operational expenditures.

The financial impact of this program includes an extraordinary loss of approximately 5.4 billion yen, which will be recognized in the first quarter of the fiscal year ending March 2027. This figure accounts for the premium retirement allowances and associated job-placement assistance provided to departing staff. Despite this immediate fiscal burden, the company anticipates significant long-term efficiency gains, projecting annual personnel cost savings of approximately 1.7 billion yen. For the remainder of the current fiscal year, these savings are estimated to reach 1.1 billion yen.

Management is currently evaluating the broader implications of these personnel changes on the company's consolidated earnings forecast for the fiscal year ending March 2027. A revised outlook, incorporating both the recent performance data and the impact of the reduced headcount, will be disclosed alongside the first-quarter earnings results. This strategic move reflects a broader industry trend of Japanese media and publishing firms streamlining operations to maintain financial agility in a shifting market landscape.