Ricoh to cut 9 pct of global workforce

[May 26, 2011]  TOKYO (AP) -- Ricoh Co. will reduce its global workforce by 9 percent as the Japanese copier maker seeks to overhaul its struggling business.

The Tokyo-based company said Thursday it plans to cut 10,000 of its 109,000 workers over the next three years. It will also streamline redundant operations, withdraw from unprofitable businesses and shift toward new growth areas.

Ricoh expects the changes outlined in its midterm management strategy to bolster operating profit by 140 billion yen ($1.7 billion) by the fiscal year ending March 2014. It targets net sales of at least 2.4 trillion yen ($29.2 billion), which would represent a 24 percent increase from revenue in the just-ended fiscal year.

The company has been battling a strong yen, the lingering effects of the global financial crisis and rapidly changing market demands.

Japan's recent disaster further exacerbated woes. The March 11 earthquake and tsunami damaged equipment and factories. In its earnings report last month, Ricoh expressed uncertainty about the outlook this fiscal year amid potential power shortages and ongoing supply chain issues.

Investors cheered Ricoh's latest announcement and sent its shares higher on the Tokyo Stock Exchange. The issue jumped more than 4 percent to 885 yen, outpacing a 1.5 percent rise of the benchmark Nikkei 225 stock average.

[Associated Press]

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