Mitsubishi to Cut 170 Jobs, Drop LCD TVs

Mitsubishi U.S. CE operations will limit direct sales to a roster of dealers numbering only in the “mid-teens” and shift other retailers to distributors, in a restructuring that will cut 170 jobs by August at two warehouses and its California headquarters, dealers briefed on the plans said.

Mitsubishi also is dropping LCD TVs, just weeks after unveiling a new 3D-capable line of 40-, 46- and 55-inch models at CES (CED Jan 6 p1). Mitsubishi is shedding a money-losing business to focus on DLP-based rear projection TV, where it’s the sole remaining supplier, retailers said. “Our company suffered some significant losses which impacted this difficult decision,” a Mitsubishi spokeswoman said.

As part of the renewed emphasis on rear projection, Mitsubishi is weighing introducing a 100-inch model and expanding its assortment of laser-based sets, dealers said. Mitsubishi also is dropping 60- and 65-inch screen sizes in DLP to focus on 73-inch and up, the company said in a statement. It introduced a 92-inch set at CES and has a 75-inch LaserVue set. Frank DeMartin, vice president of sales, declined to comment.

The restructuring, which takes effect May 1, also includes eliminating some regional vice president of sales positions and shifting those people to directors of sales. Among the regional vice presidents remaining with Mitsubishi under the new structure are Ken Kadis, Matt Pugel and Gary Watkins, who will report to DeMartin, who was previously vice president of marketing. While identities of the retailers continuing with direct sales weren’t available at our deadline, the list is said to include, among others, ABC Warehouse, Brandsmart and P.C. Richard, retailers said. The new dealer structure will focus on “key accounts and a few distributors,” the Mitsubishi spokeswoman said.

"I could whittle my line down to two SKUs and still make a business of it because they are the only supplier” of rear projection TVs, a regional dealer said. “They may become less of a player” in the overall CE category, but “in my market there is still demand for rear projection TVs” in sizes not currently available in LCD or plasma, the dealer said. “It will be interesting to see” if Mitsubishi brings the price of the 73-inch set down to what the 65-inch previously sold for, he said.

Mitsubishi will close offices in Braselton, Ga., and Ontario, Calif., and combine them with its headquarters in Irvine, Calif., the company said. Mitsubishi also will cut jobs at its Mexicali, Mexico, TV assembly plant, but continue to produce large-screen displays there, the company said.