Struggling Onkyo to cut 30% of audiovisual equipment business workforce in Japan
TOKYO, NNA – Struggling audiovisual equipment maker Onkyo Corp. will streamline its home audio equipment business following the failure of the planned divestment of its mainstay operations to a U.S. firm.
The firm announced Monday it will slash about 30 percent of the workforce in the business, which accounts for nearly 70 percent of group sales, in a bid to lead reduction in costs at an estimated 1 billion yen ($9.2 million) annually.
Onkyo said in May it had planned to sell its audiovisual equipment business to U.S. Viper Holdings Corp. but failed to agree on the deal and ended up halting the divestment plan, it said on Oct. 4.
As part of its restructuring efforts in the home audio equipment business, the company decided to downsize the operation, including halving managerial posts, it said.
In the meantime, the Osaka-based firm is gearing up its automotive speaker operations, planning to triple the product output to up to 600,000 units per month in India.
It also said earlier this month that it will build a car speaker factory in the central Chinese city of Chongqing with Taiwanese electronics giant Inventec Corp.