Konica Minolta Inc., a prominent manufacturer of office, healthcare, and industrial equipment, has made the decision to reduce its workforce by cutting 2,400 jobs worldwide due to challenges in the printer and copier market. The layoffs are expected to impact both regular and non-regular employees and will be carried out by March 2025. This move comes as the company aims to adjust to a changing work environment and improve its overall performance.
As a result of this restructuring, Konica Minolta Inc. is projecting a loss of approximately 20 billion yen ($132 million). The company's President, Toshimitsu Taiko, addressed investors, emphasizing the need to enhance productivity per employee through a comprehensive long-term strategy. With a focus on "breaking with the past," the company is streamlining its operations and concentrating on core businesses to drive growth and adapt to evolving market conditions.
The decline in sales of office equipment, a key segment for Konica Minolta, can be attributed to the increasing shift towards paperless processes and remote work setups. To counter these challenges, the company has been actively pursuing mergers and acquisitions since 2017 to diversify revenue streams and foster expansion. However, despite these efforts, Konica Minolta has faced significant losses at its acquired subsidiaries. The fiscal year ending in March 2023 marked the fourth consecutive year of net losses for the company, with a record loss of 103.1 billion yen, highlighting the necessity for strategic restructuring and performance improvements.