Nikon will cut 2,000 employees in the non-Japanese markets by March 2022, according to this Nikkei article. This represents about 20% of the total overseas workforce.
Nikon is also going to transfer the production of camera bodies from Miyagi, Japan, to Thailand. This will also be accompanies by massive cuts.
Next round of cuts will follow in winter and will touch both domestic staff and overseas marketing that will be reduced further (and not 20% only).
Nikon Report 2021 in Japanese
Video business structural reform
In the video business, we are working on a drastic change in the business structure through the structural reform announced in November 2019.
https://www.nikon.co.jp/ir/ir_library/ar/pdf/2021/21nikonreport_j.pdf
Next casualty spotted by mirrorless-camera.info is the Nikon AF-S Micro NIKKOR 60mm f/2.8G ED lens for F-mount – it is already listed as discontinued on the official Nikon Japan website.
Due to the continuing decline in the camera market, mainly due to competition from smartphones, Nikon intends to curtail the production of all camera bodies in Japan by the end of this year. Workers will be transferred to other lines.
As part of structural reforms, the corporation will move production from Japan's Miyagi prefecture to its main plant in Taiwan. “The level of quality of our products will remain unchanged even if they are produced abroad,” a company spokesman said.
In Japan, the company currently only produced the D6, a model designed for professional photographers. The manufacturer intends to save few jobs for the already employed people by transferring them to the assembly lines for some components for cameras, healthcare products and image sensors.
In addition, Nikon plans to close two factories in Yamagata and Fukushima prefectures in northeastern Japan, which is currently making interchangeable lens parts.
Nikon is going down fast, expect new big announcement before 2021 fall. Very big.
Apology and Notice Regarding Temporary Suspension of Orders for Certain Products
May 20, 2021 Product Information
Thank you very much for your continued support of Nikon products.
Due to production reasons, we have decided to temporarily suspend the acceptance of orders for some products from Friday, May 21, 2021, onward, as it will take some time before we can deliver the products to our customers.
We sincerely apologize for any inconvenience this may cause to our customers.
We will continue to monitor the situation and will announce when we will resume accepting orders and when the delivery date is fixed. We will do our best to deliver the products as soon as possible, and we appreciate your understanding in this matter.
The company is temporarily suspending orders for the AF-S NIKKOR 180-400mm f/4E TC1.4 FL ED VR DSLR lens.
In a public notice published on Nikon Japan’s website, the company admits that it will suspend orders of the telephoto lens starting after May 21, 2021 for an indefinite amount of time.
Nikon has discontinued their pension plan for their employees in the US. Nikon employees who haven’t turned 65 were offered a lump-sum buyout. Nikon will no longer offer a pension plan for their US employees.
Present situation inside
The oft-repeated BCN+R mirrorless numbers from retailers in Japan basically say this: Sony is in first place, then Canon, Fujifilm, and OM Digital Solutions, with Nikon and Panasonic nowhere to be found since BCN doesn't report out more than the top group. Thus the oft-repeated "Nikon is failing" chant from the disinformation crowd.
No, Nikon is mostly doing something different. (Whether that is wise or not is open to debate.)
BCN's numbers are (1) Japan only; (2) biased towards chain and consumer outlets (think Best Buy/Target in the US); and (3) aren't often reported in those quoting BCN with the actual models being sold also noted. In the current 2021 mirrorless numbers just posted, for instance, four low-cost cameras took up a bit over one-third of the entire chart (Sony A6400, Canon Kisses, Fujifilm X-A5). Nikon does not seem to be targeting the types of outlets that BCN+R tracks, and the only product they have that compares to those most popular Canon, Fujifilm, and Sony models is the lonely Z50 and its two lenses. As I've been writing since, well, forever, no clear commitment to DX means fewer sales and leakage of customers to the other makers. All in the under US$1000 market.
https://www.zsystemuser.com/nikon-z-system-news-and/why-i-dont-put-much-credenc.html
It is sad to look at Nikon sponsored infuencers, even such top level and old style as Tom. He in public looks very distant but always in contact with PR side of Nikon to be able to help them and advise on how to move.
His level constantly dropped last years and in 2020 reached the new absolute low. But he is still above most of the writers.
He was also author of smart anti m43 and especially anti Olympus PR campaign (as at the time it was important by Nikon). It was fun to read his m43 reviews where he smartly slammed m43 with style and humour.
Interesting leaks coming from Nikon
Some representatives tell that Nikon will keep only one DSLR - top, very expensive on. All other models will be killed, equipment dismantled.
APS-C will be gradually phased out, despite mirrorless models with such sensors. Nikon will keep only 3-5 lenses with not FF sensor coverage.
Main focus will be on very reach people, new advertisements for late 2021 and 2022 will be focused on rich old travelers, lawyers, doctors and so on. Also ads will be for top level professionals. Old style amateur focused ads will be phased out since 2022 almost completely.
We'll see multiple steps of price hikes during 2021 and early 2022 making cameras positioned as nice premium modern accessory.
Our camera business is in the red in the current fiscal year (ending March 2021), but it is aiming for a surplus in the next fiscal year (ending March 2010). Since we recorded the equipment of the factory as an impairment loss in the current fiscal year, it seems that the cost amortization burden will be reduced in the next fiscal year and it will be easy to become profitable. It seems that Nikon is making various efforts to streamline its management and strive to be able to generate profits even if sales are low.
Regarding new products for cameras and lenses, new models will be released next year, and it seems that there is a possibility that at least 12 lenses will be released. You can see that from the increase from 18 to 30.”
Nikon USA recently had layoffs that mainly impacted NPS staff (Nikon Professional Services). Cuts had been very significant. NPS layoffs happened also in Canada.
Just as I told you.
I really do not remember, some reputable site.
@Vitaliy_Kiselev what's the source of this graph?
How big structures want to save themselves by rising prices above any reasonable amount.
They just need money (c).
Most fun is that PV had been only place where I posted big warnings in 2011 and 2012 on that turn happened and management of companies will ruin the market. Instead we have all this false guys who declare that it is just smartphones and not their "smart" support and advice that did the damage.
Suggestion from another private talk
Avoid buying any Nikon cameras and lenses if you want to use them professionally. Service cuts and lack of parts can lead to extremely slow repairs or lack of ability to repair.
Nikon optimization will be focused on reducing all expenses on servicing and warranty.
The chart above shows that Nikon saw just 36% of the sales from the previous year.
Nikon is making a new Sony with the same sensor. ;-)
Video camera won't allow them to stay in business, even whole segment is tiny compared to photo guys. I am not talking about really good top models.
How hard for them to make a very good video camera and stop playing games and stay in business?
Yes, they also even tell that they can exit making cameras.
More bad news. Nikon is #5 in mirrorless sales.
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