Hitachi is to split its consumer electronics and automotive businesses in two as part of a fundamental restructuring of the company, after it warned investors it would make a ¥700bn (£5.5bn) loss due to falling sales.
Hitachi said that the restructuring of the company – which will take place in July – was aimed at cutting out layers of decision-making and boosting efficiency at the Japanese technology firm. It announced that it will be trying to cut costs by ¥5.1bn in the coming financial year.
The firm will also appoint a new president as part of the restructuring. Takashi Kawamura – currently chairman of Hitachi Plant Technologies – will become the firm’s new president next month.
It is the second major Japanese manufacturer to launch a fundamental restructuring programme this month, after Sony announced it would merge its many business units into just two, supported by a third.