Highlights
- KADOKAWA will record a ¥5.4B ($33.6M) extraordinary loss after 154 employees joined its voluntary early retirement program.
- The restructuring follows two years of declining profits, with the company expecting annual personnel cost savings of roughly ¥1.7B ($10.5M) through a leaner organizational structure.
- The move comes amid broader challenges for KADOKAWA, including shareholder pressure from Oasis and disputes involving Takeshi Natsuno.
KADOKAWA will record an extraordinary loss of approximately ¥5.4 billion (~$33.6 million) after 154 employees accepted the company’s voluntary early retirement program. The company issued the initiative targeting employees aged 45 or older with at least five years of experience on May 14, 2026.
The over $33M expenditure is tied to the severance pay and support that the company announced during the retirement program disclosure. KADOKAWA will record the amount as a loss in its first-quarter financial results for fiscal 2027 (Q1 FY2027).
Besides the severance packages, eligible employees were offered career transition support as well. The voluntary retirement applications were open till June 26, with KADOKAWA disclosing the results on July 2. As per the company, the voluntary retirement will take effect from July 31, 2026.
Early Retirement Follows KADOKAWA’s Organizational Restructure
KADOKAWA announced the special early retirement program after the company recorded two consecutive years of declining profit in FY2026 and FY2025. During its announcement, KADOKAWA framed it internally as a step toward a leaner organizational structure.
“This initiative aims to restructure our organizational framework while also supporting the employees who have contributed to our growth,” was further emphasized in the notice.
Rather than setting a target number of departures, KADOKAWA left applications uncapped, allowing eligible employees to decide whether to participate. The company had also attributed the demanding and polarizing nature of the anime industry at the time as a cause of this decision.
While the one-time payout will weigh on first-quarter earnings for FY2027, KADOKAWA expects the move to lower annual personnel expenses by roughly ¥1.7B ($10.5M). About ¥1.1B (~$6.8M) of those savings is projected to be realized during the final eight months of the current fiscal year.
KADOKAWA, A Company Under Pressure
Beyond declining profit, the anime conglomerate is facing mounting pressure on all fronts. In mid June, ex-KADOKAWA chair Tsuguhiko Kadokawa filed a defamation lawsuit against the company's current president, Takeshi Natsuno.
Tsuguhiko’s bribery case, tied to the Tokyo Summer Olympics 2021, also resurfaced in January 2026 and again in June during the latest lawsuit against Natsuno. On the other hand, Hong Kong-based activist fund Oasis Management, now the company’s largest shareholder at a 15.25% stake, has been pushing to remove Natsuno, citing multiple reasons.
Natsuno survived the ouster vote at KADOKAWA’s June 24 annual meeting (AGM) with around 60% favorable votes. However, Oasis has pointed out that the result reflected a demand for accountability, and the fund intends to press for governance changes for “A Better KADOKAWA”.
With this background, KADOKAWA enters this restructuring period amid broader managerial issues. In recent months, the company has outlined a new mid-term management plan, announced board member changes, and has been trying to balance its declining publishing unit. The company has also announced new projects, including one from its hit franchise, Higurashi: When They Cry.
