On the heels of a workforce reduction at its headquarters in Melville, New York, Canon U.S.A. has plans to consolidate its sales divisions and merge with its Canon Solutions America subsidiary, effective Jan. 1, 2025, the Long Island Business Journal reported.
Citing an internal memo from Canon U.S.A. President and CEO Isao “Sammy” Kobayashi to employees, the publication reported the moves are designed to help the company reduce expenses. It was not known whether further job cuts were pending or if physical locations would be exited, the newspaper reported.
In a statement furnished to ENX Magazine, Canon said the reorganizational measures are aimed at streamlining operations and increasing efficiency to reach the desired performance level. “These plans were not made lightly, but they will support the company’s ability to meet the needs of our current and future clients and customers. Our success on the global level can provide Canon Americas with the necessary momentum for growth.
“Canon is steadfast in its dedication to long-term sustainability and supporting our customers and partners. By facing customers and business partners without any silos, we will be better equipped to make speedy decisions and provide our customers with value-added solutions for growth.”
While the parent company has projected profits above $2 billion for 2024, Canon Americas’ sales have plummeted 37% since its high in 2007, the Business Journal wrote. The memo read, in part, “While Canon enjoyed a successful first half on a global basis, Canon Americas continues to travel down a path that is not sustainable. … …despite our best efforts we could not achieve as much revenue and profit as the first half last year.
“Our profitability is hurt by the fact that our operating expenses are too high. Our operating profit ratio is smaller than many of our competitors, leaving us at a disadvantage.”
In late July, it was learned that the manufacturer reduced staff at its headquarters by between 9% and 14%, the equivalent of 100 to 150 positions. As part of this latest move, the OEM is reducing its multiple sales groups to two, led by a single marketing organization.
