The Yomiuri ShimbunMajor copy machine maker Ricoh Co. plans to close or relocate at least four offices in the Kanto region that are under its group umbrella — including its Saitama plant in Yashio, Saitama Prefecture — by spring next year, The Yomiuri Shimbun has learned.
Under the plan, about 3,000 workers, or nearly 10 percent of the firm’s employees in Japan, will be transferred. The measures are intended to cut expenses — mainly office rent and maintenance costs — by ¥2 billion to ¥3 billion.
The company may also reduce personnel in and outside the country in an effort to improve business performance.
The plan specifies the Saitama plant and an office in Shinagawa Ward, Tokyo, are subject to closure. The company will also cancel its lease contract on its headquarters in Tokyo’s Ginza district and relocate its headquarters to the Omori plant in Ota Ward.
Research and development functions will be concentrated at the Ebina plant in Kanagawa Prefecture, while operations such as those related to information systems will be transferred to its plant in Tsuzuki Ward, Yokohama. In line with the moves, a large-scale employee relocation will be implemented.
A global office equipment company, Ricoh recorded consolidated net sales of approximately ¥2.21 trillion for the year ending in March 2016. However, profits have been rapidly declining due to intense price competition both domestically and globally, and the firm has had difficulty differentiating its copier and multifunction printer products — its main profit generators — from those of rivals.
Ricoh has also failed to diversify its businesses. The company’s operating profit, which indicates profit from core businesses, and after-tax profit are forecast to drop 61 percent to ¥40 billion and 84 percent to ¥10 billion, respectively, according to a report on its consolidated financial earnings for the fiscal year ending in March 2017. The report was compiled in accordance with international accounting standards.
On Jan. 26, the company announced a plan to promote Deputy President Yoshinori Yama****a to president and CEO as of April 1, and for Zenji Miura, the current president and CEO, to retire.
Ricoh plans to provide assistance to employees subject to the latest personnel reshuffle who find it difficult to accept transfers. The company is considering a plan to urge employees to apply for voluntary retirement, among other alternatives.