The Japanese automaker will eliminate about 5 per cent of its 1,200-person US work force, but most of those cuts will be made through attrition and only about 21 people will be laid off, Mitsubishi spokesman Kim Custer said. The regional offices in Cypress; Purchase, NY Schaumburg; Ill, Arlington; Texas and Casselberry; Fla, will be closed by June 1999.

Mitsubishi, whose September sales rose 24 per cent in the United States, said the initiative supports its goal of improving its finances and creating stronger ties with its customers, dealers and employees.

``If there is anything I've learned in my years in this business, it is that there is no perfect organisational structure,'' said executive vice-president and chief operating officer Pierre Gagnon of Mitsubishi Motor Sales ofAmerica Inc. He joined Mitsubishi from General Motors Corp's Saturn division about 11 months ago.

``Moving boxes on an organisation chart will not solve our problems,'' he added. ``What we're trying to accomplish is to outline a business plan that will achieve our basic goals, and create a structure filled with people capable of making those goals a reality.''

Included in the restructuring, Mitsubishi is shifting responsibility for fleet, remarketing and incentives to other departments. It also created three new departments focusing on product quality, business development/dealer operations and customer satisfaction.

Gagnon announced the restructuring in a letter to employees on Tuesday, Mitsubishi said. Meetings are being scheduled for executives to meet with employees around the country.