Struggling Japanese consumer finance company Aiful Corp says it will cut 2,000 jobs, or about 44 percent of its group work force.
Aiful said Thursday it will also shut down 253 branches, nearly 30 percent of its outlets nationwide, to 680 under a major restructuring plan. The company said it has asked creditors to delay its repayments of 280 billion yen ($3.1 billion) in debt.
Consumer finance firms make money by borrowing from other financial institutions and then lending that money at higher interest rates. Their profits are eroded when the difference narrows between the rates they borrow at and the rate they lend at.