|Fujifilm cuts 5,000 jobs|
Ilse Jurriën : February 7th 2006 - 19:40 CET
Fujifilm cuts 5,000 jobs : Fuji Photo Film (President & CEO: Shigetaka Komori) is implementing a full spectrum of policies and measures based on VISION75, a mid-term management plan formulated in Feb. 2004 that articulates three fundamental strategies: “Building new growth strategy,” “Implementing comprehensive structural reforms over all management levels,” and “Enhancing consolidated management.” Policies and measures include: actively investing in growing businesses such as the flat panel display materials business; conducting drastic reforms in R&D structure to create new businesses; establishing the Advanced Core Technology Laboratories that conduct the basic research in order to expand the current business domain.|
Fujifilm policy |
Fujifilm also wants to shift the Fuji Xerox production to China and renews its domestic marketing system; and prepare to adopt a holding company structure. With these efforts, the Information Solutions and Document Solutions segments - which are two of its three main business segments - have posted fair performance results during the current fiscal year (ending March 2006).
Fujifilm - Reduced demand
However, the Imaging Solutions segment, which accounts for approximately 30 percent of Fujifilm’s consolidated revenue, has faced rapidly intensifying competition due to reduced demand for color film and slowing growth in the digital camera market. The business plan for the fiscal year ending March 2006 incorporated the expected decline in profit and thus financial performance was very close to the goals set out in the plan until the 3rd quarter of the present fiscal year. However, an unfavorable market situation is projected to continue and further negative impact on profit is expected. Looking ahead at further changes in the market environment, Fujifilm has decided to implement measures which will reform the whole of the current structure including R&D, production and distribution. The Company has decided to implement the reforms intensively over a one-year period, spanning the second half of the fiscal year ending March 2006 and the first half of the fiscal year ending March 2007. To accomplish these structural reforms, Fujifilm will appropriate temporary expenditure of a total of 165 billion yen in the current and next fiscal year. As 80 billion yen out of 165 billion yen will be appropriated in the current fiscal year, the Company is revising its estimated performance projection downward for the current fiscal year. The structural reforms include the reduction of approximately 5,000 people from the Imaging Solutions segment.
Summary of Structural Reforms:
1.) Optimizing business systems for color film and other photosensitive materials
• Optimizing globally expanded production capacity of photosensitive materials
-Reduce a part of production facilities for photosensitive materials
-Streamline personnel in accordance with above reforms
• Pursue exhaustive prioritization and efficiency in entire process from R&D to sales/distribution
-Reorganize R&D system prioritizing photographic prints
-Greatly reduce sales expenditure and consolidate laboratories and distribution
-Streamline personnel in accordance with above reforms
2.) Structural reform of digital camera business
• Strengthen product lineups which contain distinctive features such as high-sensitivity
• Scale down domestic production system and establish mass production system in China
• Exhaustive reduction of expenditure and strengthen SCM to reduce total inventory
Fujifilm - Photography
Photography is indispensable to humankind because of its ability to express the full spectrum of human emotions such as joy, sadness and love. Fujifilm believes that its mission is to preserve and nurture the culture of photography to meet the needs of our longtime customers. In order to sustain our photosensitive materials business, execution of the structural reforms is essential. Fujifilm will achieve drastic reduction in fixed costs and secure stable earnings for the Imaging Solutions segment in the fiscal year ending March 2008. Fujifilm intends to assert itself to continue to provide total imaging solutions from input to output by taking advantage of the merits of both analogue and digital imaging products and services. It will thus contribute to further development and expansion of the “culture of photography”.
Fujifilm - Future
Fujifilm will fully utilize its cultivated resources including; its proprietary technologies in the field of chemicals, electronics, optics and software; financial strength; customer trust; brand value. At the same time, Fujifilm will further accelerate its effort to expand business with a particular focus on the areas of medical/life sciences; graphic arts; highly functional materials such as flat panel display materials, semiconductor materials and ink materials; and optical devices enhancing new investment in R&D and M&A.
Fujifilm - New growth strategy
Fujifilm places the present time as a period of its “Second Foundation” or redefinition, and will carry out the reforms on a company wide basis. Fujifilm is also at the final stage of developing its new growth strategies. Fujifilm aims at an operating profit of 200 billion yen for the fiscal year ending March 2008, and an operating profit of 280 to 300 billion yen for the fiscal year ending March 2011 by propelling new growth strategies.
Fuji Photo Film U.S.A., Inc. is a subsidiary of Fuji Photo Film Co., Ltd. and delivers technology solutions to meet the imaging and information needs of retailers, consumers, professionals and business customers. As a global leader in digital imaging, Fujifilm pioneered the development of digital medical systems, and today is the leader in digital minilab systems. The company was ranked number 15 for U.S. patents granted during 2004, employs more than 75,000 people worldwide and in the year ending March 31, 2005, had global revenues of more than $23.6 billion. In the United States, Fujifilm is a leader in delivering high quality, easy-to-use imaging and information solutions in the following categories: Digital Imaging Systems, Film and Imaging Systems, Recording/Storage Media, Motion Picture Film, Graphic Arts and Printing Systems and Medical Imaging and Diagnostics Systems. Fujifilm is an environmentally friendly, humane enterprise and an exemplary corporate citizen.