JVC Restructures with Plans to Push Everios

June 4, 2007- In one fell swoop late last week, JVC appointed a new president and announced a 30% job cut for its Japanese workforce. Kunihiko Sato, 62, will replace JVC’s current president, Masahiko Terada, set to become Special Senior Corporate Advisor. Also announced at the press conference were strategic revisions to boost revenue, including a significant push on their line of Everio hard disk drive (HDD) camcorders. The labor cutbacks, approximately 1,800 jobs, include a 60% reduction within the consumer AV equipment segment by the end of this fiscal year.

 

"In addition to top management meetings (between JVC and leading retailers), I want each salesperson to provide our product plans and other information through small exchanges with retailers and help the company win the retail industry's trust," stated Kunihiko. JVC is not only revamping their sales tactics on paper—the company plans on making major alterations to their roster of marketing directors, set to take hold in late June.

 

With strong marketing objectives and a shrunken workforce, JVC plans on expanding their camcorder sales. The Everio line, JVC’s self-proclaimed “cash cow,” will be placed at the forefront as a major vehicle of expected revenue, along with car electronics. JVC hinted at plans for a new Everio concept model, though no information on its development or release has been disclosed.  

 

Sales have gradually dwindled for JVC in recent years. They have experienced a $61.4 million loss as of March 31, and are expecting a $82 million profit drop for this fiscal year. JVC’s parent company, Matsushita, is still in conversation with TPG (Texas Pacific Group) regarding the possible sale of the company—an offer that was made public in mid-March. Matsushita, which releases products under the Panasonic brand name, owns 52.4% of JVC’s equity.