COVID-19 Has Not Been Kind To Nikon, Thousands Set To Be Sacked
The losses are mounting at Japanese camera Company Nikon with 2,000 more employees set to get the chop, it’s not known at this stage if any Australian staff will be laid off as consumers buy less cameras due to COVID-19 lockdowns.
The firm is considering cutting its sales force immediately with the real prospect that the business could be shrunk significantly with sales falling to 11 million units today Vs 100 million units 10 years ago.
According to Nikon Australia sources the local operation has been taking on an Asia Pacific role with finance management for several Countries now being managed from the Companies North Ryde Australian headquarters.
Nikon whose bankers are the Mitsubishi Bank who also own shares in the camera Company switched to a distributor model in 2006.
Under Maxwell Optical Industries CEO John Swainston the Nikon business boomed.
For 24 years John Swainston grew that business and acquired complementary products to distribute until in October 2006 Nikon suddenly decided to take over the brand.
Nikon has been bleeding losses for some time, in the second quarter 2020, the Company posted losses of $342 Million analysts estimated a loss of around $270 Million.
Now the Company is set to cut an additional 2,000 employees after cutting hundreds from the Company earlier this year this represents more than 10% of its total workforce, due to a slump in its core camera business, Nikkei reported.
Its business has impacted by the performance of Intel, one of Nikon’s key clients of semiconductor equipment, the daily reported.
The Company is also planning to move its camera production to Thailand and discontinue domestic output.