November 5, 2005
Konica-Minolta To Cut Photo Imaging Business
Kyodo - Nov. 4th 2005 - Konica-Minolta Holdings Inc. indicated that it will heavily cut it's photography imaging business, including it's burgeoning digital camera arm.
Citing strong pressure from both domestic saturation and stiff competition, KM will cut ten percent of it's workforce; a figure of approximately 3,000 jobs. KM's earlier intentions were to focus it's business on developing and marketing digital SLR cameras, which is acknowledged to be the profit segment in the digicam business. That turnaround plan was estimated at the time to cost about USD 287 Million (34B Yen) over four years. Revised figures now put that plan at about USD 760 Million (90B Yen) for just fiscal year 2005 alone. Konica-Minolta now has revised it's year-end profitability; citing a loss of about USD 397 Million (47B Yen) by March of 2006. No dividends are expected to be paid out.
Posted by covey22 at November 5, 2005 11:06 PM