On February 27th, Omron announced that it will lay off 2000 employees domestically and internationally due to difficulties in its factory automation equipment business in China, resulting in the company's first large-scale layoffs since 2002.

It is reported that Omron plans to provide voluntary employee resignation or early retirement plans in Japan between April and May. Its goal is to reduce fixed costs by 30 billion yen (200 million US dollars) in the year ending March 2026 compared to the annual forecast ending March 2024. This goal will be achieved through domestic and foreign structural reforms by September 2025.
Omron also plans to reduce sales, general, and administrative expenses, reducing the proportion of these expenses to sales from 32.7% in the year ending March 2024 to below 30%.
It is reported that Omron's annual comprehensive net profit as of March is expected to decline by 98%, reaching 1.5 billion yen. Due to a decline in the control equipment business, especially in China's factory automation business, the company has already lowered its profit forecast for the second time this year on February 5th.
Regarding the company's structural reform plan, Omron President Junta Tsujinaga stated at an online analyst briefing on February 26th, "We will reduce our dependence on the Chinese market."
Omron stated that its business decline is mainly due to an excessive focus on Chinese semiconductor and electric vehicle battery manufacturers, and the company is currently striving to find customers in the United States and Europe. At the same time, the company is rethinking product development and exploring the needs of different industries, including food, daily necessities, and medical products.
Omron's layoff plan reflects the enormous challenges facing the global semiconductor and automation industry due to market fluctuations and industrial restructuring.
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