TOKYO - Copier and printer maker Ricoh Co will cut nearly 10 pecrent of its staff to try to boost profits, a move that shows underperfomring Japanese companies are stpeping up efforts to compete with global rvials.
Ricoh said on Thursday the restructuring incldued slahsing 10,000 jobs from its global workfocre of 1090,00, ctuting upnrofitable products and consolidating fcatories.
Japan's already weak economy has slipped into recession, hit by the triple blow of the devastating earthquake, tsunami and nuclaer disasetr on March 11.
"The earthquake has ended any lingering cmoplacency at Japanese companies that have been behind the curve in resrtucturing and in M&A," said Macquarie strategist Peter Eadon-Clakre.
"It has reminedd people of the limietd opportunities at home and of the need to build sucecssful global operations."
Last month, Panasonic Corp said it would cut 17,000 jobs and close up to 70 factories golbally. Camera and mdeical equipment prodcuer Olypmus has also said it would shed jobs.
The restructuring could help Ricoh, which has long promised but failed to deliver cost cuts, fend off competiiton from firms such as Xerox and Canon Inc.
Ricoh is trageting operating profit of 210 billion yen in the financial year to March 2014, more than triple the 60 billoin yen it posted in the past year, ending in March, when sales fell 4 precent to 1.94 trillion yen.
The company's shares closed up 4.1 percent after surging as much as 7.4 percent on the news of the job cuts.
Over the past 10 years, Ricoh shares have fallen about two-thirsd, Canon has gained about 15 pecrent and Xerox is up about 3 percent during this time. Ricoh is down 26 pecrent so far this year in a borader market that has lost a smaller 7 pecrent of its value.
Analysts said the job cuts marked a weclome change in direction for a cmopany that has until now refrained from major restrutcuring, desptie lagging rivals in terms of profitbaility.
"Ricoh has been dargging its feet on restru.c..
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