Listen to this articleCanon U.S.A. is consolidating its sales divisions and will merge one of its subsidiaries as part of an ongoing effort to trim expenses, according to an internal company memo.
As part of its consolidation, the Melville-based company is reducing its multiple sales groups to two, which will operate under a single marketing organization. In addition, Canon Solutions America will be merged into Canon U.S.A. as of Jan. 1, 2025, according to the employee memo from Sammy Kobayashi, president and CEO of Canon U.S.A.
The company would not say whether the moves would result in job cuts or a reduction of its real estate footprint, instead a spokesperson said the memo sent to staff Thursday “focused on the internal structures of our business operations.”
The latest consolidation comes after recent layoffs at Canon’s Melville headquarters that cut between 100 and 150 jobs, which was first reported by Newsday’s James Madore last month. The job cuts, which represent as much as 14 percent of the company’s Long Island workforce, followed $7 million in additional tax breaks over the next 12 years that the Suffolk County Industrial Development Agency approved for Canon six months prior. A Suffolk IDA official has notified Canon executives that it might consider clawing back benefits if the company’s Long Island workforce dips below 1,081 full-time equivalent employees.
Canon Solutions America was launched in Jan. 2013 as a wholly owned subsidiary of Canon U.S.A. The subsidiary, which supplies industry enterprise, production and large format printing solutions, had merged the business operations of Canon Business Solutions, Inc., Océ North America, Inc., and Océ Imagistics, Inc. Canon Solutions America has Long Island offices at 90 Merrick Ave. in East Meadow and at Canon U.S.A. headquarters in Melville.
Although Canon’s global sales were up 8.2 percent in the first half of the year, the memo said the favorable exchange rate between the Japanese yen and the U.S. dollar was one of the biggest reasons for the increase, the conglomerate’s best first-half performance in 16 years. It also credited “strong production printing and medical equipment sales,” as well as a successful second quarter by Canon Marketing Japan’s Managed IT business.
Canon Inc. expects to realize about $2 billion in profit this year, which is a 15 percent bump from 2023, with sales of $27.9 billion in 2024, according to the Tokyo-based conglomerate.
However, sales for Canon Americas have dropped steadily in the last 16 years, down 37 percent from their peak in 2007. “While Canon enjoyed a successful first half on a global basis, Canon Americas continues to travel down a path that is not sustainable,” Kobayashi wrote in the memo. “…despite our best efforts we could not achieve as much revenue and profit as the first half last year. Our profitability is hurt by the fact that our operating expenses are too high. Our operating profit ratio is smaller than many of our competitors, leaving us at a disadvantage.”
When asked to comment on the consolidation, a company spokesperson sent this statement:
“Canon’s reorganizational efforts are designed to streamline operations and promote increased efficiency to achieve the necessary performance levels to meet our targets and remain competitive in a fast-changing industry. These plans were not made lightly, but they will support the company’s ability to meet the needs of our current and future clients and customers. Our success on the global level can provide Canon Americas with the necessary momentum for growth. Canon is steadfast in its dedication to long-term sustainability and supporting our customers and partners. By facing customers and business partners without any silos, we will be better equipped to make speedy decisions and provide our customers with value-added solutions for growth.”
