Victor Company of Japan (JVC) said it will use a voluntary early retirement program to help cut staff by up to 1150 employees (18%). JVC will recruit volunteers among domestic employees with careers of 10 years or more. Many of the cuts are expected to come from indirect departments.
The voluntary retirement date is scheduled for Oct. 15. As a result of the cuts, JVC said it will log an extraordinary loss of US$95 million for the first half (April to September) of fiscal 2007.
At the same time, JVC also announced it will dissolve by March 2009 its JVC DE Mexico S.A. de C.V., business unit, which has sold and repaired JVC's consumer electronics and industrial equipment products in Mexico. JVC said it will also sell its wholly owned Chinese subsidiary, Fujian JVC Electronics Co., by the end of March 2008. The company had produced deflection yokes for CRT TVs. (Nikkei Business Publications)