Announcement concerning the substantive completion of reorganization measures of Kenwood Corporation
Kenwood Corporation Ltd.. (Hachiohji Shi, Tokyo, Haruo Kawahara, Managing Director) has been vigorously moving ahead with implementation of the company-wide "Sweeping Reorganization Plan" announced on July 11. A 642-person attrition will be completed by the end of September. This is a 27% reduction from the 3/31/02 workforce of 2,367. The results exceeded the original target of 600 people and includes the voluntary retirement program that concluded on September 13.
Reflecting on these results, the Board of Directors decided in their September 27 meeting to start with a new corporate structure from October 1, with an across-the-board overhaul of the organization.
In addition, basic agreement was reached yesterday through collective bargaining with the union regarding labor cost reduction measures including the 15% salary cut proposed in the abovementioned action plan. The plan was approved by the Board of Directors today, and the necessary procedures have been put into place for implementation commencing with the October payroll.
The substantive reorganization of Kenwood's main body has been completed and the company will now strive for new growth.
By pushing ahead with the restructuring of related companies, both in and outside of Japan, , we can now expect to accelerate the reorganization of the entire consolidated group.
Reorganization of Headquarter Structure
The decision has been made to streamline company operations by consolidating headquarter operations into the following 5 divisions:
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