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Announcement concerning the substantive completion of reorganization measures of KENWOOD Corporation

KENWOOD Corporation Ltd.. (Hachiohji Shi, Tokyo, Haruo Kawahara, Managing Director) has been vigorously moving ahead with implementation of the company-wide "Sweeping Reorganization Plan" announced on July 11. A 642-person attrition will be completed by the end of September. This is a 27% reduction from the 3/31/02 workforce of 2,367. The results exceeded the original target of 600 people and includes the voluntary retirement program that concluded on September 13.

Reflecting on these results, the Board of Directors decided in their September 27 meeting to start with a new corporate structure from October 1, with an across-the-board overhaul of the organization.

In addition, basic agreement was reached yesterday through collective bargaining with the union regarding labor cost reduction measures including the 15% salary cut proposed in the abovementioned action plan. The plan was approved by the Board of Directors today, and the necessary procedures have been put into place for implementation commencing with the October payroll.

The substantive reorganization of KENWOOD's main body has been completed and the company will now strive for new growth.

By pushing ahead with the restructuring of related companies, both in and outside of Japan, , we can now expect to accelerate the reorganization of the entire consolidated group.

Reorganization of Headquarter Structure

The decision has been made to streamline company operations by consolidating headquarter operations into the following 5 divisions:

  • Strategic Business Planning Division

  • Group Management Division

  • Technology Initiative Division

  • Corporate Administration Division

  • Strategic Business Planning Division

  • Strategic Business Planning Division will consolidate the company's business strategies and communicate those strategies through investor relations, public relations, advertising, etc.

  • Group Management Division will merge the management and measurement of all related worldwide companies with the objective of optimizing consolidated performance.

  • Technology Initiative Division will establish the company's technical strategies and set a course that will allow the company to realize its vision while optimizing its brand image.

  • Corporate Administration Division will combine General Administration personnel and Legal Audit.

  • Establish Finance and Accounting Planning Office under the Finance and Accounting Division in order to strengthen and speed up the consolidated accounting system.

For queries regarding this article, please contact:

Mr. S. Yamaga
PR Department
KENWOOD Corporation (Japan)
email: pr.qa@pr.kenwood.co.jp

Updated 02/09/27 (C) 2002 KENWOOD Corporation