Tuesday, April 30, 2024
Konica Minolta Shares Jump on the Back of 2400 Job Cuts
Konica Minolta Shares Jump on the Back of 2400 Job Cuts
Shares of Konica Minolta Inc. have jumped to a 10-month high following the company’s announcement to slash 2,400 jobs globally by the end of March 2025. Investors responded positively to the news that the cuts will increase profit by ¥20 billion (US$130 million)
According to Nikkei Asia, the Japanese office equipment maker will lay off the 2,400 employees as it shifts its focus to newer business lines. As demand for paper printing in offices declines, the company will increase productivity through generative artificial intelligence.
The company currently employs about 40,000 employees. There will be a broad range of cuts in both full-time and part-time jobs, including international 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 (pictured) told a news conference. The company said the job cuts are not solely confined to office equipment divisions but declined to elaborate.
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, including copying machines, accounts for over 50% of total sales. It will focus more on display films used for television, personal computer screens, and virtual reality headsets.
The company posted a loss of 103 billion yen for the fiscal year ending March 2023, its fourth consecutive year in the red. Japanese office equipment companies have been consolidating. Ricoh and Toshiba Tec will establish a new company this year to integrate their development and production of office machines, including printers.
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