Japanese electronics manufacturer Hitachi announced on March 16 that it will implement a series of business structure reforms, including leadership shuffle and business spinoffs, to combat losses and cut costs, Reuters reported. Hitachi has named the incumbent chairman of Hitachi Plant Technologies as new corporate president, slated to assume office in April. The company also plans to spin off its automotive systems and consumer electronics businesses in July 2009.

Earlier at the end of January 2009, Hitachi said it expected an annual loss of 700 billion Yen (US$7.11 billion; US$1=98.43 Yen) for the fiscal year ending March 31, 2009, and planned to cut up to 7,000 jobs worldwide. In the next fiscal year ending March 31, 2010, the company aims to cut fixed costs such as personnel expenses and procurement spending by 200 billion Yen (US$2.03 billion) and 300 billion Yen (US$3.05), respectively.

The new consumer electronics company spun off from Hitachi is expected to engage in the development, manufacturing, and sales of flat-panel TVs in the Japanese market as well as commercial-use LCD (Liquid Crystal Display) projectors. As for ODD (Optical Disk Drive), mobile phone, and other product businesses, the new company is expected to fully leverage partnerships with other companies. At the same time, the new spinoff is expected to undergo workforce review to make for a final headcount of 750.

The names of both new spinoffs have not been decided yet. Following the corporate restructuring, Hitachi plans to strengthen efforts at developing the environment, car battery, and renewable energy businesses.