Ricoh has announced a major restructuring initiative that will include significant job cuts within its ranks. The company is set to lay off around 2,000 employees, represents approximately 3% of its global workforce of 79,544 as of March 2024. Along with these layoffs, the company aims to scale down its office device business and concentrate on helping third-party companies transition to digital processes.
According to Nikkei Asia, the restructuring comes in part to the challenging position brought on by a shrinking market for printers and office machines. As companies increasingly adopt digital models, the demand for traditional printing has declined. The shift to remote and hybrid work during the pandemic has sped up this trend, increasing pressure on printer manufacturers like Ricoh.
The job reductions will take place until the end of Ricoh’s current fiscal year of March 2025. The company will facilitate this by offering an early retirement plan to about 1,000 employees in Japan. The overall restructuring will incur a cost of ¥16 billion (~RM476 billion) but is expected to enhance annual profits by ¥9 billion (~RM267 billion) in the following fiscal year. Despite the cuts, the Japanese manufacturer has stated that it will not completely exit the printing industry.
Earlier in July, Ricoh formed a joint venture with Toshiba TEC Corporation, creating a new entity called Etria. This joint venture involves transferring about 8,400 employees who will focus on developing and manufacturing new office printers. Etria will remain unaffected by the current job cuts.
Ricoh may shift towards supporting essential office functions like data management for invoices and delivery bills. The company is also looking into integrating AI technologies to promote a more efficient and paperless future. While the pandemic briefly boosted printing activity, recent insights from industry leaders, including HP’s CEO Enrique Lores, show that printed page volumes have significantly declined, underscoring ongoing challenges in the market.
(Source: TechSpot, Nikkei Asia)
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