Canon Australia Profits Fall Almost 90 Percent, Lays Off 10% of Staff
When any company loses 90 percent of its profits, big changes need to be made. As reported by Photo Counter Australia and confirmed by a spokeswoman for Canon Australia, CA profits plummeted from $38.6 million in 2012 to $4.1 million in 2013. I did a double-take as well, but those numbers are real and confirmed.
Canon plans to outsource approximately 100 jobs currently in ‘administration and back-office support jobs.’ It’s reported that Canon’s public response states the restructuring will, “streamline its office operations to increase efficiencies and better serve its customers.” Most of the layoffs will come from the head office in North Ryde. Canon has roughly 1000 Australians employed at the facility, according to this ProPrint report.
The interesting part about the numbers is that it doesn’t seem to be the sale of goods that caused this massive drop. During a time when camera sales have been down across the board, revenue from Canon Australia was down from $722 million in 2012 to $670 million in 2013. The $52 million fall is more of a reflection of the digital compact market. After analyzing the numbers, further Sale of Goods only dropped less than $20 million, which reflects about 3 percent.
The curve ball in the data is that revenue, unrelated to sales of goods and services, dropped from $55 million in 2012 to just $23 million in 2013. In this section, a drop of around $30 million in “dividend income” from $44.4 million in 2012 down to 15.5 million in 2013. It can be assumed the Mothership in Japan could be contributing to this data, but the report does not further elaborate.