Struggling Pioneer Bosses Quit

The chairman and president of Japanese electronics group Pioneer are to step down, taking responsibility for a downturn in business.

President Kaneo Ito and chairman Kanya Matsumoto will remain as a director and advisor to the firm respectively.

Current executive vice-president Tamihiko Sudo will become president of the firm in January.

Pioneer has warned it expects to unveil a record net loss of 24bn yen ($200m) for the year as margins shrink.

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The company has been struggling as it has been forced to slash prices to keep up with its rivals.

I will step down to regenerate our management
Kaneo Ito, Pioneer

"We are now facing the harshest ever business conditions since our firm was established (in 1947)," Mr Ito told journalists.

"I will step down to regenerate our management," he added.

Pioneer said the pair had resigned to take the blame for "the steep decline in Pioneer's financial performance due to the smaller-than-planned number of units sold of plasma displays and DVD recorders".

The firm added that it would carry out a restructuring drive under Mr Sudo's leadership in an effort to turn around its fortunes.

Reports in the Nihon Kenzai business newspaper suggested the firm could axe 1,000 jobs - 10% of its domestic workforce - and scale back its DVD recorder business.

Japanese electronics firms have been squeezed recently by weak prices - with Sanyo axing 14,000 jobs and selling factories in an effort to cut costs by 70bn yen.

Sony, Hitachi, Toshiba and Matsushita have all issued cautious forecasts for the current financial year, warning that the current price war in the industry is taking its toll.

Story source: bbc.co.uk.