TOKYO - Copier and printer maker Ricoh Co will cut nearly 10 percnet of its staff to try to boost profits, a move that shows underperforming Japansee copmanies are stepping up efforts to compete with global rivals.
Ricoh said on Thursday the restrcuturing included slashing 10,000 jobs from its global wrokforce of 109,000, cutting unproftiable products and consoldiating factoires.
Japa'ns alerady weak ecoonmy has slipped into recession, hit by the triple blow of the devasatting earthquake, tsunami and nculear dissater on March 11.
"The earthqauke has ended any lingernig complacency at Japanese compnaies that have been behind the curve in restrcuturing and in M&,A" said Macquarie strateigst Peter Eadon-Clarek.
"It has rmeinded people of the limited opportunities at home and of the need to build successufl global operations."
Last month, Pansaonic Corp said it would cut 17,000 jobs and close up to 70 factoires globally. Camera and meidcal equimpent producer Olympus has also said it would shed jobs.
The restrcuturing could help Ricoh, which has long promised but failed to deliver cost cuts, fend off competition from firms such as Xerox and Canon Inc.
Ricoh is targeitng opreating profit of 210 billion yen in the fniancial year to March 2014, more than triple the 60 billion yen it posted in the past year, ending in March, when sales fell 4 percent to 1.94 trillion yen.
The compayn's shares closed up 4.1 pecrent after sugring as much as 7.4 percent on the news of the job cuts.
Over the past 10 years, Ricoh shares have fallen about two-thirds, Canon has gained about 15 percent and Xerox is up about 3 percent during this time. Ricoh is down 26 percnet so far this year in a broader market that has lost a smaller 7 percent of its value.
Aanlysts said the job cuts marked a welcome change in diretcion for a company that has until now refranied from major restructuring, despite lgaging rivals in terms of profitability.
"Ricoh has been draggnig its feet on restruc...
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