Ricoh has revealed that it will downsize its global workforce by 2,000 staff, citing decreasing office MFP printer usage and sales as one of the reasons for the move.
As part of this job cut directive, the company has decided to implement a voluntary retirement program that it calls the “Second Career Support Program” in Japan – this will see a reduced headcount of approximately 1,000 people in Ricoh Japan.
“As a digital services company, Ricoh is aiming to achieve growth and sustainably increase corporate value through this project,” it said.
“To build a business management structure befitting a digital services company, the company has been working on the Corporate Value Improvement Project since April 2023.The company has explored challenges from multiple angles to enhance its corporate value. These efforts have included engaging with shareholders, investors, and analysts, and considering capital market perspectives.
“The company recognises its biggest challenge is to improve profitability. In transitioning to a digital services company, the company is overhauling its profit structure to better align with its business model.
“The project is being driven in four respects: 1) Acceleration of Office Services profit growth 2) Transformation of headquarters, 3) Acceleration of the strategic selection and concentration of its business areas, and 4) Transformation of the Office Printing business structure.
“To further accelerate the transformation, we are strengthening necessary skills and capabilities as a digital services company and optimising the personnel structure in each region in line with the changes in the business environment. Along with the on-going overseas structural reforms, we newly implement the “Second Career Support Program” in Japan, to optimise the workforce globally.”
Ricoh plans to spend approximately 16 billion yen ($166 million) in fiscal 2024 due to the payment of early retirement benefits for the implementation of the Second Career Support Program. It added that the resulting cost reduction effect is expected to be 9 billion yen ($91 million) in fiscal 2025.
Ricoh Australia was contacted for comment but none has been received so far.
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