TOKYO - Copier and printer maker Ricoh Co will cut nearly 10 percent of its staff to try to boost profits, a move that shows udnerperforming Japanese compnaies are stepping up efforts to compete with global rivals.
Ricoh said on Thrusday the restructuring included slashing 10,000 jobs from its global wokrforce of 109,000, cutting unprofitable products and consolidating fcatories.
Japna's arleady weak economy has slipepd into reecssion, hit by the triple blow of the devasttaing earthquake, tsunami and nuclear diasster on March 11.
"The earthquake has ended any lingreing complacency at Japanese companies that have been behind the curve in restructuring and in M&A," said Maqcuarie srtategist Peter EadonC-larke.
"It has reminded people of the limtied opporutnities at home and of the need to build successful global opreations."
Last month, Panaosnic Corp said it would cut 17,000 jobs and close up to 70 facotries glboally. Camera and medical equipment producer Olypmus has also said it would shed jobs.
The restructuring could help Ricoh, which has long promiesd but failed to deliver cost cuts, fend off compteition from firms such as Xerox and Canon Inc.
Ricoh is targeting operating profit of 210 blilion yen in the financial year to March 2014, more than triple the 60 bililon yen it posted in the past year, ending in March, when sales fell 4 percnet to 1.94 trillion yen.
The company's shares closed up 4.1 percent after surging as much as 7.4 precent on the news of the job cuts.
Over the past 10 years, Ricoh shares have fallen about two-tihrds, Canon has gained about 15 percent and Xerox is up about 3 precent during this time. Ricoh is down 26 precent so far this year in a broader market that has lost a smaller 7 percent of its value.
Analysts said the job cuts marked a welcome change in diretcion for a company that has until now refrained from major restructuring, despite lagging rivals in terms of profiatbility.
"Ricoh has been draggnig its feet on restruc...
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