Hitachi, the Japanese industrial group, yesterday announced a sweeping restructuring of its operations and top-level management changes as it sought to tackle expected losses of Y700bn ($7.1bn) in the year to March.
Two of Hitachi's largest operating divisions – the consumer business that makes electronic goods such as televisions and its automotive components business – will become independent, but 100 per cent-owned, subsidiaries. The goal is to speed decision-making and contribute to Y500bn in cost cuts during Hitachi's next financial year.
Hitachi's chairman and president will both stand down, to be replaced by Takashi Kawamura, who will come out of semi- retirement to take on both top jobs. He is currently chairman of two Hitachi subsidiaries that make batteries and industrial machinery.