JVC Kenwood, seeks voluntary staff retirement to save costs and limit mounting red ink
JVC Kenwood, a leading Japanese electronics company, revealed that they are soliciting the voluntary retirement of a few hundred of their employees - targeting executive officers, aged 45 or older. A few hundred would equate to their goal of a reduction of 10% of their current level of about 4,200 employees.
The company cites a predicted earnings loss of JPY 5.5 billion (USD 55 million) for the full business year through March 2014. According to the company, the deficit happened due to sluggish sales of their car navigation system, which is their leading product.
For those who decide to voluntarily leave the company, JVC Kenwood will pay an incremental benefit over their current retirement benefits.
In addition to that, starting this month, they will lower their directors' salaries by 12-26% and that of executive officers by 10% for the next 5 months.
Regarding their interim financial results, the company has revenues of JPY 148.4 billion (USD 1.48 billion) which is a decrease of 0.6% compared with the prior year. Already through September, net loss for the year is JPY 5.1 billion (USD 51 million).