Smart Office

Pioneer Cuts More Jobs

Pioneer Cuts More Jobs

Troubled Japanese electronics maker Pioneer will cut an additional 600 jobs in Japan as part of a revival plan which the company claims will better integrate the company’s television and audio equipment units.

The job cuts will come through early retirements and are in addition to the 2,000 worldwide job cuts Pioneer announced in March. The plan will be presented to Pioneer’s labor representatives over the next few days.

Pioneer spokesman Kesanobu Yamagishi would not comment on the report but confirmed that the company is drafting a comeback plan that will be unveiled on Dec. 8. He could not say whether additional job cuts are being considered. Tokyo-based Pioneer has been cutting jobs, trimming its product lineup and introducing a new inventory system to cut annual costs by 30 billion yen. The money-losing company has been hammered by tumbling prices for plasma display televisions and DVD recorders, its core products. Some say the Compay will be aquired.

Pioneer posted a loss of 12.26 billion yen in the first six months of the fiscal year to Sept. 30, compared with a net income of 4.81 billion yen a year earlier. For the full fiscal year that ended March 31, Pioneer lost 50.11 million yen. Pioneer has allowed its divisions to operate independently so they can focus on their own product lineups. But under the new system, the company will integrate operations to more efficiently develop value-added products, the Nihon Keizai said. In Australia Pioneer say that they are not affected by the problems associated with their parent Company however local management have refused to outline local revenue or profit results. In the plasma market where Pioneer Australia have achieved strong sales the Company is set to come under pressure from a Vizio a new plasma manufacturer who is set to launch a $2 million dollar marketing campaign early in 2006 across several leading magazines and web sites. The campaign for a range of high end high definition screens includes print advertising, web, 16 page brochures, airport posters and trade marketing.

All of the Vizio range is being sold through specialised retailers.   

Leave a Comment