Konica Minolta Inc., a leading manufacturer of office, healthcare, and industrial equipment, announced plans to cut 2,400 workers globally on April 4, 2023. This decision comes in response to a shrinking printer and copier market, driven by the changing work environment.
The reductions will affect both regular and non-regular employees and are scheduled to be implemented by March 2025. The company expects to record a loss of approximately 20 billion yen ($132 million) in connection with the restructuring.
"We will improve productivity per person,” company President Toshimitsu Taiko told investors. “This is a long-term plan.”
Konica Minolta is pursuing a strategy of "breaking with the past" through business selection and concentration to improve its performance. Sales in the company's core business, office equipment, have been declining due to the increasing adoption of paperless and remote work practices.
Since 2017, Konica Minolta has been engaging in mergers and acquisitions to create new revenue streams and achieve growth. However, these efforts have resulted in significant losses at its acquired subsidiaries.
For the fiscal year ending in March 2023, the company reported a net loss of 103.1 billion yen, marking the fourth consecutive year of net losses and the largest loss in the company's history.