TOKYO (AFP) — Struggling Japanese electronics maker JVC announced Tuesday it aims to slash 1,150 jobs or almost one-fifth of its workforce through early retirements in an effort to reinvigorate its business.
The downsizing is "an indispensable measure to return to the black in 2007, to strengthen management base in 2008, and achieve a long-term growth strategy by 2009," Victor Co. of Japan (JVC) said in a statement.
JVC, an affiliate of Matsushita Electric Industrial Co., was the pioneer of VHS video recorders a generation ago but has recently struggled in an increasingly competitive electronics market.
Last July, JVC agreed on a capital tie-up with fellow Japanese high-tech firm Kenwood Corp. to energise JVC's electronics consumer business.
JVC said it would book a one-off charge of 11 billion yen (96 million dollars) in the six months to September to cover the job cuts but the loss has already been incorporated into its financial forecasts.
The offer will apply to workers with more than 10 years' service.
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