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Fuji Photo to Cut 5,000 Jobs, Slashes Profit Forecastan. 31 (Bloomberg) -- Fuji Photo Film Co., the world's fifth-biggest digital camera maker, will eliminate 5,000 jobs and shift some production to China from Japan, in a reorganization that it expects to reduce full-year profit by 77 percent.
Net income will fall to 20 billion yen ($170 million) in the year ending March 31, compared with its previous 85 billion yen forecast, the company said in a statement today. The company, which makes FinePix digital cameras, had 75,638 workers worldwide as of March 2005, according to its Web site.
Fuji Photo, founded in 1934, is the latest in the industry to cut costs amid falling prices and as people switch to digital cameras from film. Eastman Kodak Co., the world's largest photography company, yesterday posted a fifth straight loss, while Konica Minolta Holdings Inc. earlier this month said it will exit its century-old camera business.
``Fuji Photo's plan symbolizes an end to the film camera era,'' 
said Hiroshi Chano, who helps oversee $6.7 billion at Yasuda Asset Management Co. in Tokyo. ``The digitalization of the camera industry occurred at much faster pace than I expected. Reorganization will be a painful process for Fuji Photo.''
The company will incur an 80 billion yen charge this year to cut its domestic digital camera production while boosting output in China, according to the statement.
``By taking these restructuring steps, we hope to reduce fixed costs and secure stabile profits in our imaging solutions division,'' the Tokyo-based company said in the statement.
Third-Quarter Earnings
In the fiscal third-quarter, net income rose 30 percent to 27.1 billion yen as sales gained 6.5 percent to 681.7 billion yen, the company reported today. Operating profit, or sales minus the cost of goods sold and administrative expenses, fell 4.4 percent to 41.7 billion yen.
Fuji Photo's imaging solutions division, which sells color film and digital cameras, had a 5.2 percent drop in sales to 19.5 billion yen. The unit accounts for 29 percent or sales.
Shares of Fuji Photo fell 0.7 percent to 4,020 yen at the 3 p.m. close on the Tokyo Stock Exchange. The results were released after the market shut. The stock gained 4.3 percent last year, lagging the 40 percent advance in the benchmark Nikkei 225 Stock Average.