Tuesday, November 8, 2016

Nikon to retire, reassign or rationalize 23.5% of domestic workforce

Nikon Corporaton LogoThe rumors have been flying for some time about Nikon layoffs in Japan. Today, Nikon finally announced their workforce plans publicly.

Nikon's last quarterly financial report was mixed and troubling. While Nikon was able to increase overall income and earnings per share substantially, they continue to face shrinking sales which doesn't bode well for future earnings if the trend continue

  • Net income 176.2 percent higher than last year,
  • Earnings per share are 28.92 yen, higher than 10.46 yen last year,
  • Net sales declined 8.9 percent.
It's easy to see the troubling aspect of the financial report, the continued downward trend of Nikon sales from those stats.

Today, in Nikon's Notice of Restructuring, they announced what they plan to do with regard to their Japanese domestic workforce, so we can put all the rumors away for now.

From Nikon's notice today, we now know that there are three actions Nikon is currently planning for their domestic workforce.
  • Nikon will be announcing the details of a voluntary retirement program of approximately 1,000 domestic employees.
  • In the Imaging Products Business Division, Nikon will be “re-assigning 350 domestic (Japan) employees to reduce fixed cost.”
  • In the Semiconductor Lithography Business Division, Nikon will be “rationalizing and re-assigning 1,000 employees to reduce fixed cost.”
Together, the total of 2,350 domestic employees discussed in Nikon's announcement comprises about 23.5% of Nikon's Japanese workforce.

I can't say for sure that "rationalizing" is the same as “laying-off,” but it sure sounds like it. We don't know, right now, how many will be laid off, and how many will be re-assigned.

No plans were announced for Nikon's international workforce today.

Nikon has not announced plans to directly address shrinking sales.


Walter said...

I can only say "Wow" on that one.

Susan said...

That's drastic. At least they're doing something. Where's there mirrorless DSL camera to go against Sony? That would help their sales alot.

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