In response to the challenging business conditions caused by a sudden decline in product demand in developed nations, the stronger yen, and increased fixed costs, the Company began taking emergency measures in fiscal 2009, reducing expenses and procurement costs, temporarily suspending factory operations in Japan, and curtailing capital expenditures. In addition, the Company has been working toward business recovery by promoting profitability reforms, such as improving the efficiency of its factory operations and relocating personnel in Japan, while registering an impairment loss on production facilities and equipment, in order to reduce the fixed costs of businesses in developed nations.
On the personnel front, in fiscal 2009 the Company stopped mid-career employment, restrained graduate recruitment, relocated personnel, transferred employees to companies outside the Yamaha Motor Group, initiated work sharing, promoted a career redirection program, and reduced salaries and bonuses, among other measures.
However, reflecting business conditions in developed nations -- where no short-term business recovery is anticipated -- the Company has determined that it must further reduce fixed costs. To curtail personnel expenses and increase management efficiency, the Company will initiate a program involving streamlining the workforce.