JVC Kenwood Holdings Inc., a Japanese maker of audio equipment, video cameras and televisions, plans to eliminate 500 jobs at its Victor Japan unit by March 31 amid falling sales.
The cuts are needed because the strong yen and competition with Asian manufacturers have reduced revenue, JVC said today in a statement to the Tokyo Stock Exchange after markets closed. The company said the move won’t affect this fiscal year’s earnings forecasts.
JVC, based in Yokohama near Tokyo, said in May it was targeting by fiscal 2013 annual sales of 450 billion yen ($5.4 billion), operating profit of 14.5 billion yen, and net income of 4.5 billion yen, as part of its mid-term plan.
The company, which had about 18,000 employees as of June, said in October it planned to cut 150 jobs at its Victor Japan unit, seeking early retirement volunteers among executives aged 50 or older.
JVC on Oct. 28 narrowed its full-year net forecast to an 8 billion yen loss, from an earlier forecast of a 13 billion yen loss. Osaka-based Panasonic, the world’s largest maker of plasma televisions, is JVC’s biggest shareholder.