Are Ricoh’s employees paying for the Ikon aquistion?March 11, 2009
We all know that Ricoh paid too much to purchase Ikon. Any of you that are in deals against Ikon know that Ricoh continues to spend liberally to pay off large leases for Canon equipment IF the customer will switch to Ricoh equipment (It must be nice to have deep enough pockets to buy market share). But who is paying the price for Ricoh generosity? Is it Ricoh’s employees?
In a cost cutting move. Ricoh apparently announced the following changes for its employees:
- Suspend the Employer match for the 401K plan for 2009
- No merit increase for FY2009
- bonus control program which caps payment at 75% of the annual potential for bonus payout
- Universal standard work week moves from 37.5 hours to 40 hours, without pay increase
- hope these actions will save $20 million in FY2009
Did I miss the part where they told us how much of a pay cut that Ricoh’s CEO was taking? After all wasn’t he at the helm for this growth by acquisition strategy. Buying companies (like Savin, Lanier, & Ikon) doesn’t guarantee you will capture there market share. Do you think Ricoh is beginning to figure this out?
It sounds like Ricoh is trying to balance their budget on the backs of the rank & file workers. Does Ricoh really think that they will keep there best & brightest people with this plan? I think not! Especially with the Large Independent Canon Dealers & CBS growing like crazy. Hey guys (& girls) come on over the water is fine over here.
We, the Independent dealers have continued to be fiscally responsible. We don’t buy our market share, we earn it. As a result we are growing and we are hiring. In this economy that’s a certifiable miracle!
That’s my $0.02