Tuesday, October 28, 2025

Manufacturers Relocate Headquarters as Japan’s Business Shifts

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manufacturers relocate headquarters is becoming a clear trend among Japan’s biggest companies. Firms like Toshiba and Fujitsu lead this shift away from Tokyo. They want to improve teamwork and adapt to new work styles. To start, Toshiba is moving its executive office and corporate planning division from Tokyo to Kawasaki. This move reconnects with its roots since Kawasaki once housed its lamp factory. The public relations team will also relocate soon. Toshiba aims to strengthen internal communication and cut costs.

Similarly, Fujitsu is relocating key headquarters functions outside Tokyo. The goal is to boost cooperation between research, development, and manufacturing teams. Companies want departments close together, not scattered in different Tokyo offices. In fact, many companies across Japan are following suit. In fiscal 2024, over 16,000 firms moved their head offices outside Tokyo. This is nearly 19 percent more than the previous year. The biggest gainers are Saitama, Chiba, and Kanagawa. These places offer lower rents and easier operations than Tokyo’s expensive market.

Meanwhile, Tokyo experienced a net loss of over 1,100 companies. This signals a growing trend of firms seeking more affordable and practical locations nearby. Remote work and high costs also encourage this shift. Many businesses want to balance cost savings with better teamwork. Some keep offices in Tokyo while moving other divisions to nearby prefectures. This strategy supports innovation and operational efficiency.

In summary, manufacturers relocate headquarters to gain efficiency, reduce risks, and improve collaboration. Major companies no longer see Tokyo as the only option. Instead, they embrace regional hubs and smarter office setups. This trend points to a new phase in Japan’s business environment.

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