Report: Ricoh announcing cost cuts in face of crisis
According to a report by Nikkei Ricoh is facing its biggest crisis ever and will have to cut costs in order to survive. Ricoh’s Imaging and Solutions division, which predominantly produces printers and accounts for 90% of Ricoh’s consolidated sales has been struggling the most. Nikkei reports that ‘Ricoh is staring at huge losses as the market for multifunctional printers, Ricoh’s cash cow, evaporates and its global sales network racks up high costs.’
In light of this situation Ricoh’s new President and CEO of Ricoh, Yoshinori Yamashita, has set a target of reducing costs by 100 billion yen ($912 million) through March 2020. He is also quoted as saying that the company’s new policy is to rid itself of the ’emphasis on market share above all else.’
According to the report the lion’s share of the cost cuts will be realized in Ricoh’s global sales and services network which comprises of more than two-thirds of the company’s 100,000 global employees. At this point it is not clear if and how Ricoh’s imaging brands, such as Pentax, the Theta 360 degree cameras or the R Development kit live-streaming VR camera will be impacted by the cost reductions. When Nikkei reported earlier this spring that Ricoh was considering leaving the camera business, Ricoh denied that it was considering such a move.