Ricoh Said to be Selling Subsidiaries, Laying-Off Workers in North America

The Nikkei Asian Review reports that Ricoh Company of Tokyo, Japan, is considering selling two subsidiaries, its logistics and semiconductor business, and will also lay-off workers in North America.

But in a statement, Ricoh refuted that it will be selling subsidiaries, stating: “Ricoh is reviewing and executing many activities to reform our structure and further grow our business, but it is not true that we have made any decision on selling these companies.” It did now however refute the report concerning lay-offs.

The Nikkei Asian Review says that Ricoh is also considering selling Ricoh Electronic Devices, an Osaka subsidiary that Ricoh spun off in 2014, and which develops and fabricates power chips for smartphones and other devices.

The publication notes that weak sales of copier/MFPs resulted in Ricoh’s operating profit margin declining to 1.7 percent for its fiscal year that ended on  March, 31, 2017, down 2.9 percentage points versus the previous year. It also says that Ricoh plans to close or suspend operations in one Japanese plant and another in the United States, as well as lay off workers in North America, hoping to achieve a total of 100 billion yen in savings.

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