Human ResourcesCEO PulseLeadershipManagement

Rakuten's CEO Made Staff Switch to English - Or Face Demotion

CNBC International
CNBC International•May 6, 2026

Why It Matters

Adopting English unlocks global markets and talent, giving Rakuten a competitive edge and setting a precedent for Japan’s corporate language policies.

Key Takeaways

  • •Rakuten mandates English as corporate language within two years.
  • •Goal: compete globally and tap broader talent pool.
  • •70% of engineers hired in Japan are non‑Japanese, many non‑speakers.
  • •Company provided English classes and adjusted deadlines to aid staff.
  • •Almost all employees met the language test, boosting productivity.

Summary

Rakuten's chief executive announced a company‑wide shift to English, giving employees two years to become proficient or risk demotion.

The policy is driven by the need to compete internationally and to overcome Japan’s limited domestic engineering talent. Currently 70 % of engineers hired in Japan are non‑Japanese, many of whom do not speak Japanese, prompting a single lingua‑franca.

Management softened the rollout by extending deadlines, offering on‑site English lessons, and funding external language schools. As the CEO noted, employees could study in the morning and resume work after lunch, and virtually every participant passed the required proficiency test.

The move positions Rakuten to collaborate more seamlessly with global partners, attract diverse talent, and accelerate product development, while signaling a broader cultural shift among Japanese corporations toward English as a business language.

Original Description

Rakuten’s founder told employees to switch to English within two years — or face demotion.
Mickey Mikitani says the move was necessary because the internet had turned business into a global competition.
At the time, it was seen as a cultural shock inside corporate Japan.
"We cannot do it with Japanese, we cannot do it with Chinese, it has to be English.,” he told CNBC’s Christine Tan.
The transition took longer than planned. Rakuten adjusted the deadline, helped employees attend English classes and even allowed some staff to spend their mornings studying before starting work after lunch.
Today, Mikitani says the payback has been clear, helping Rakuten attract global talent and compete beyond Japan.
Visit the link below to watch the latest episode of “Managing Asia” and hear how Mikitani built one of Japan’s most influential tech companies by making bold bets on e-commerce, telecom, AI and global growth.
#CNBC #ManagingAsia #Rakuten
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