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Hitachi Spins Off Major Appliances Segment

9/27/2001 11:24:00 AM Eastern

Tokyo - Hitachi will undergo a major reorganization next year that will see its major appliance and industrial components segments broken into separate units, the company reported today.

Hitachi executives said the moves should be completed by April 2002 and will help speed up decision making and force the divisions to operate closer to their customer base. The spin off was prompted by the company's previously posted earnings announcement that has it losing in excess of $1 billion this year. Compounding the situation is the series of terrorist attacks in the United States, which are having a severe impact on the world's economy.

A company spokesman said today's news will have no impact on the company's CE segment.

In August announced job cuts that will trim Hitachi's 341,000 work force payroll by 4.3 and take effect by next March. Japan-based Hitachi employees will endure the brunt of the cuts, while 4,500 overseas workers will be let go.