Japan Display Inc. (JDI) has announced plans to reduce its workforce by approximately 1,500 jobs in Japan, accounting for nearly 60% of its domestic employees. The move follows 11 consecutive years of financial losses, with the company reporting a consolidated net loss of ¥78.2 billion ($538.7 million) for the fiscal year 2024, significantly higher than the previous year’s loss of ¥44.3 billion.
Chief Executive Officer Scott Callon is set to resign on 1 June, assuming responsibility for the ongoing financial challenges. He will continue to support his successor as non-executive chairman following approval at the general shareholders meeting on 21 June, though he will forgo compensation. Jun Akema, the current head of JDI’s procurement division, will succeed Callon, also taking on the role of president.
During a news conference, Callon expressed regret over the company’s performance, offering apologies to shareholders, client companies and employees for the inconvenience caused by the deteriorating business results.
The job cuts will primarily be managed through a voluntary redundancy programme running from 26 June to 25 August. This initiative aligns with JDI’s decision to cease liquid crystal display (LCD) panel production at its Mobara plant in Chiba Prefecture by March next year. The company also plans to implement job reductions at its overseas locations.
JDI’s financial performance for the year ending March showed a 21.4% drop in sales compared to the previous year, totalling ¥188 billion. Its operating loss increased to ¥37.0 billion from ¥34.1 billion. Due to ongoing restructuring efforts, the company has not released an earnings forecast for fiscal year 2025.
Formed in 2012 through the merger of LCD panel operations of Hitachi, Toshiba and Sony Corp., JDI’s domestic production will be consolidated at its remaining facility in Kawakita, Ishikawa Prefecture, once the Mobara plant ceases operations.
-Japan Times
