Ricoh Layoffs: 2,000 Jobs Cut as Printer Demand Falls
What is the reason for Ricoh’s layoffs?
Ricoh, the Japanese tech giant known for its office equipment, is making significant changes as it grapples with a shrinking demand for office printers. In response to ongoing challenges, the company has announced plans to cut approximately 2,000 jobs globally. This restructuring represents about 3% of its 79,544-strong workforce as of March 2024.
The move comes as part of Ricoh’s broader strategy to shift focus from traditional office devices to digital transformation services for businesses. With the rapid shift towards fully digital workplaces, the market for printers and office machines has contracted sharply, and Ricoh, like many others in the industry, is feeling the impact.
When will the job cuts take place?
According to Nikkei Asia, the layoffs are expected to continue through March 2025. The company has earmarked 16 billion yen (about $112 million) for the restructuring, with 1,000 early retirement packages being offered to employees in Japan. Ricoh anticipates these cuts will increase annual profits by 9 billion yen starting next fiscal year.
Despite the downsizing, Ricoh is not entirely exiting the printer business. The company recently partnered with Toshiba Tec Corporation to form a joint venture named Etria, which will develop and manufacture office printers. This new entity, which absorbed around 8,400 Ricoh employees, will remain unaffected by the layoffs.
What is Ricoh’s future business focus?
Ricoh’s future, however, lies in helping businesses embrace the digital age. The company aims to enhance its offerings in areas such as data management, focusing on the digitization of essential office processes like invoice and delivery management. Additionally, Ricoh is exploring AI technologies and advanced data analytics to further drive a paperless future.
While the pandemic briefly revived the need for printed materials, recent trends indicate that the demand has dropped to levels lower than before the global lockdowns. This decline is pushing companies like Ricoh to rethink their strategies for a digital-first world.
Facing Job Loss as a Ricoh Employee? Here’s What You Need to Know
If you’re a non-unionized Ricoh employee in Canada dealing with job loss due to restructuring or downsizing, you may qualify for a full severance package. Severance amounts vary based on individual circumstances and can reach up to 24 months of pay. In Ontario, mass layoffs involving 50 or more employees may also lead to enhanced severance.
At Whitten & Lublin, our skilled employment lawyers are here to support you through this process. We’ll help you understand your rights and ensure you receive the severance you’re entitled to. If you’ve been affected by recent layoffs, contact us for a consultation online or by calling (416) 640-2667.