Omron 2002 Annual Report Download - page 9

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Omron Corporation 7
Q: OMRON IS ALSO IMPLEMENTING AN EARLY RETIREMENT PROGRAM
FOR THE FIRST TIME.
A: It is one component of progress in structural reform. The Omron Group’s
domestic operations will need to reassign approximately 2,000 employees.
Of this number, we project that approximately 500 will leave the company
through natural attrition. We will reassign the remaining employees as a
matter of basic policy, but even so, we project that approximately 1,000
employees will no longer be needed. We will work to keep as many jobs as
we can, but we will also implement an early retirement system for a limited
time so that we can right-size headcount by eliminating surplus positions
without causing hardship for the employees affected.
Q: WHAT IS THE TIME FRAME FOR IMPLEMENTING THE STRUCTURAL
REFORMS?
A: Implementation will be completed by the end of September 2003. During
the current fiscal year, Omron is therefore placing the highest management
priority on executing the VIC21 measures in order to achieve our goal of
completing them in the 18 months from April 2002. Then, after putting the
final touches on our structural reforms during the year ending March 2004,
we plan to shift from reform to creation and put in place the structure
required to reorient operations toward growth strategies in the year to March
2005.
GD2010
GD2010
VIC21
VIC21
3/02 3/03
18 months
Implementation
Evaluation
11/15/01:
Begin
evaluation
9/03: Complete
restructuring
3/04: Assessment
3/04 3/05
Accomplish Group
productivity
structural reform
Move from reform
to rebuilding
Establish a
structure for
growth
Medium-term Objectives
GROWTH AFTER STRUCTURAL REFORM