Print Takes a Hit, Konica Minolta Plans to Cut 2,400 Jobs and Boost Profit.

[jim]

Print Takes a Hit, Konica Minolta Plans to Cut 2,400 Jobs and Boost Profit.
Tokyo, April 4, 2024 — Japan’s Konica Minolta has announced plans to trim its workforce by 2,400 jobs worldwide during the current fiscal year. This move is part of the company’s structural reform strategy. The office equipment manufacturer aims to enhance profitability by streamlining operations.

Job Cuts: Konica Minolta will reduce headcount at overseas production facilities for its office equipment and sales subsidiaries.

Financial Impact: The company expects to incur approximately 20 billion yen (about $131.87 million) in one-time expenses for the financial year ending next March.

Historical Context: Konica Minolta, with roots dating back to 1873, was an early innovator in cameras and photo materials. Over the years, it diversified into copiers and health care equipment.

Stock Performance: Despite recent challenges, Konica Minolta’s shares remain below their levels from the 2000s. The stock has declined by more than 50% over the past five years, although it showed some recovery in recent months. This strategic move reflects the company’s commitment to adapt to changing market dynamics and position itself for future growth.

TOKYO — Konica Minolta, a Japanese office equipment maker, said that it will cut 2,400 employees globally by the end of March 2025 as the company tries to shift its focus to newer business lines as demand for paper printing in offices falls away.

A major supplier of copy machines, the company said on Thursday that it is cutting a broad range of both full-time and part-time jobs, including at overseas sales subsidiaries and factories. Overall demand for office equipment has declined as companies turn to digital solutions.

“Currently, we are seeing weak demand in China and some parts of Europe, such as Germany,” Konica Minolta President Toshimitsu Taiko told a news conference. The company said the job cuts are not solely confined to office equipment divisions but declined to go further.

The total number of group employees was about 40,000 at the end of March 2023.

The company expects limited financial downside from the restructuring, with the cost of job cuts estimated to be around 20 billion yen ($131 million) in the fiscal year ending in March 2025. This should be largely offset in the following year by improved efficiency.  

The company’s digital workplace business segment, which includes copying machines, accounts for more than 50% of total sales. It will focus more on display films used for television and personal computer screens as well as in virtual reality headsets.

The company also supplies films for smartphones, but Noriyasu Kuzuhara, executive vice president of the company, said demand is “stable but relatively weak” now.

The company posted a loss of 103 billion yen for the fiscal year ending March 2023, its fourth consecutive year in the red. It announced last year that it would sell 80% of its shares in two subsidiaries in China that assemble products like digital camera lenses to a local company.

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April 4, 2024 at 2:24 PM