Victor plans big reduction in workforce

Struggling Victor Co. of Japan said Tuesday it will implement a major workforce-downsizing program and eliminate 1,150 jobs to engineer its rehabilitation.

The number of jobs to be eradicated is equal to 18 percent of the company's parent-only workforce of 6,490, according to the major audio and electronics equipment maker.

The downsizing program, under which Victor will offer incentive retirement benefits to workers who have spent 10 years or more at the company, was devised to facilitate its revival plan based on its tieup with Kenwood Corp.

Victor said it will solicit applications for the early retirement program in the three weeks to mid-October.

Victor and Kenwood announced in July they had agreed to form a capital and business tieup to revive Victor's consumer electronics business.

The firm will book a one-time loss of ¥11 billion to finance the incentives-based program in the April-September half.

Victor and Kenwood have said they will work together on car and home electronics products.