The first large-scale layoff of a Japanese giant in 20 years!
Abstract: Japanese medical equipment giant Omron announced on the 26th that it will lay off 2,000 employees worldwide, including 1,000 in Japan and 1,000 abroad.
*: Omron.
Omron has made its first mass layoffs since 2002 due to a sluggish business in China's automation equipment business.
Omron has about 28,000 employees worldwide, and if 2,000 of them leave, the team will lose about 7% of its workforce. These measures include the implementation of a voluntary severance plan in Japan in April and May for full-time employees over the age of 40 who have been with the company for at least three years. Candidates who leave their jobs on July 20 will receive pensions and other benefits.
Around 2020, Omron Dongguan and Suzhou ceased production, and Omron continued to produce medical devices, industrial equipment, and various electronic components such as relays, connectors, and sensors in China, with production bases in Dalian (medical devices), Shenzhen (electronic components), and Shanghai (equipment and devices), respectively.
*: Omron Shanghai Automation Equipment Factory.
The Shanghai plant, which is part of Omron, manufactures programmable controllers, sensors, temperature controllers, power supplies, servo drives, robots, and other products.
On Feb. 5, Omron lowered its full-year profit forecast for the second time, citing a decline in its control equipment business, which focuses on factory automation in China.
We will reduce our dependence on the Chinese market.
*: Dalian Omron Medical Equipment Factory.
Omron blamed the sharp drop in profits on semiconductor and electric vehicle battery makers that were overly concentrated in China and is aggressively seeking customers in the U.S. and European markets. As businesses work to reduce excess inventory, they are tapping into demand in industries such as food, household goods, and pharmaceuticals.
In addition, General Motors is trying to win back the Chinese manufacturer of automation equipment. Omron believes that it lost market share due to the disruption of the ** chain and is now trying to make a comeback by rethinking product development.
Twenty-two years ago, in 2002, Omron was founded with 1,460 employees amid an economic recession caused by the bankruptcy of an Internet company.
Omron was founded in 1933 when Kazuma Tateishi established a company called Osaka, Japan"Tateishi Electric Factory"A small factory that initially produced timers and relays. Since the 90s of the 20th century, Omron has established subsidiaries in Dalian, Shanghai, Shenzhen and Tianjin, covering medical devices, automation equipment and electronic components.