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Nikon is shrinking, multiple cuts coming
  • 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).

  • 33 Replies sorted by
  • And looking at this chart, their management did not become smarter

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    • The prestigious Nikon is in dire straits. The operating loss for the April-September period of 2020 announced by the company on November 5 fell to a deficit of 46.6 billion yen. The main reason is that the performance of the main camera business is deteriorating.
    • In the video business, which includes cameras, sales for this term are expected to decrease by about 40% from the previous term to 140 billion yen and an operating deficit of 45 billion yen.
    • Toshikazu Umatate, president of Nikon, emphasized the stance of carrying out structural reforms centered on cameras, saying, “We want to create a muscular structure in the video business that can generate profits even with sales of 150 billion yen or less.” The production of the main body of the digital single-lens reflex camera handled at the factory in Miyagi prefecture will be consolidated at the Thai factory, and the sales companies will be integrated. In addition, the number of overseas employees is planned to be reduced by 2,000 by March 2022, which is about 20% of the total overseas.
    • It’s not just the external environment of shrinking the camera market that plagues Nikon. The internal factor of delay in the mirrorless camera also echoes. Nikon is afraid of conflict with single-lens reflex cameras, and finally made a full-scale entry into mirrorless cameras in 2018. The difference is clear, with Sony’s 1.65 million mirrorless production in 2019 and Nikon’s only 280,000.
    • Nikon plans to launch three new mirrorless models at once in the second half of this year, focusing on professional and high-end products, but there are still concerns about whether Nikon can catch up with the delay. Within the company, the SLR orientation that has swept the world is deep-rooted, and it is essential to shift development costs and sales promotion costs to mirrorless cameras in the future.

    https://toyokeizai.net/articles/-/388837

  • Give them 18 monthS before inevitable death. I only see their Lens lineup surviving this, that will be bought by others and kaput Nikon.

  • Nikon Corp. plans to reduce about 2,000 employees, or 10% of its total workforce, due to a slump in its core camera business, Nikkei reported.

    Its business was also impacted by the performance of Intel Corp., one of Nikon’s key clients of semiconductor equipment, the daily reported, without saying where it got the information.

    In the company’s reform agenda announced on Nov. 5, Nikon outlined a plan to move its camera production to Thailand and discontinue domestic output. The firm is considering cutting its sales force, the paper said.

    Nikon posted an operating loss of 26.1 billion yen ($251 million) for the second quarter compared with analysts’ estimates of a loss of 20.3 billion yen.

  • Thailand means cheaper and bad products

  • @endotoxic

    Frequently it is not cheaper (as in China it is much cheaper to build complex stuff and much simpler to find qualified workers).

    And it is not bad as lot of premium stuff is made in Thailand now.

  • I started to hear very bad leaks from inside Nikon (not from Japan).

    It is very similar to Olympus, people constantly talk and look for places outside camera industry (as it is on last breaths anyway).

    People who work in EU and US think that cuts before May can become staggering (around 85-95% of all staff). Huge reduction on servicing expanses and all not very profitable accessories and lenses.

  • Lot of people seems to be preparing to leave Nikon, usually biggest changes happen in April as Japanese management needs to make numbers nicer to get multi million dollar bonuses during end of financial year. And as now it is only possible by severe expenses cutting - be prepared for silent cutting across all countries.

  • More bad news. Nikon is #5 in mirrorless sales.

    https://biz-journal.jp/2021/03/post_211003.html

  • @hoodlum

    Yes, they also even tell that they can exit making cameras.

  • How hard for them to make a very good video camera and stop playing games and stay in business?

  • @sammy

    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.

  • Nikon is making a new Sony with the same sensor. ;-)

    • “Imaging Products, we had a record quarterly sales for mirrorless and cameras.”
    • “Imaging Products business will turn profitable in real times if we exclude extraordinary costs such as restructuring-related costs and others.”
    • “Imaging Products segment was revised upward JPY 5 billion, reflecting the improvement in the third quarter.”
    • “We expect to have improved operating profit in Imaging Products business as much as JPY 3 billion.”
    • “Imaging Products business, with the high-end shifting and structural reforms, aims to be profitable even when revenue is less than JPY 150 billion.”
    • “Imaging Products business is going well recently, but we need to make further efforts in order to stably generate profit because it seems that we have just been helped by the market recovery.”

    https://seekingalpha.com/article/4404410-nikon-corporation-ninof-q3-2021-results-earnings-call-transcript

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    The chart above shows that Nikon saw just 36% of the sales from the previous year.

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  • 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.

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    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.

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  • @Vitaliy_Kiselev what's the source of this graph?

  • @LongJohnSilver

    I really do not remember, some reputable site.

  • 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.

  • 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.”

    https://mirrorless-camera.info/market/8337.html

  • 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.

  • 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.