Canon Océ looks set to cut up to 300 jobs and reduce its R&D spending in a bid to bring its costs down by 10% in 2019, according to Dutch media reports.
Het Financieele Dagblad reported that the Venlo, Netherlands-based company, which was founded in 1877 and acquired by Canon in 2010, is looking to improve its profitability.
The company reportedly attributed its decision to a slower than expected take-up of its litho replacement high-speed digital technology.
The company, which employs around 3,500 people, with 2,240 based at the Venlo head office, informed staff of its plans yesterday (10 December).
In a press statement, Canon Océ Technologies executive vice-president and chief operating officer Minoru Asada said the most important thing for the business is “to secure its financial health”.
According to De Telegraaf, a spokesperson for the company said its management has decided to focus “a little less on research and development” and more on selling the four large printers it has introduced for the professional market over the past two years.
However, the spokesperson added that the business will nevertheless continue to remain “a huge research-driven company” after the cutbacks and will continue to spend more than €100m (£90m) on R&D.
The company is reportedly looking to to cut €35m in costs next year under the plans, which are expected to be further outlined in the coming weeks, with more clarification due on where the cutbacks will fall for each department.
Canon responded to the Dutch media reports in a statement sent to PrintWeek: “Océ, a Canon company, has recently announced a cost cutting programme in order to return to profitability. A full assessment is now underway and specific measures will be announced in early 2019.”
According to its own Annual Report 2017, which do not reflect the total results of Océ, which are consolidated into Canon, but refer only to the results of Océ Holding – the Océ entities containing the research and development, manufacturing, business units and support functions – Océ’s revenues in 2017 were €751m, up 2.6% on 2016, but it made an operating loss of €9.5m.
This was, however, an improvement on the €60m operating loss recorded in 2016.