Sumitomo Chemical, Chairman of the Expo Association, Records Largest Loss in History — The Internet Questions the Ability to Run the Expo
On May 30, 2024, Sumitomo Chemical, a comprehensive chemical manufacturer chaired by Masakazu Tokura (73), chairman of the Expo Association, the organizer of the Osaka Expo, announced that it will post a loss of 312 billion yen in fiscal 2023.
Sumitomo Chemical announced a loss of 312 billion yen, an increase of 67 billion yen from the initial forecast of 245 billion yen announced in February this year. This is the company's largest deficit since it began operating in 1915. The company's president, Iwata, said on March 30 Management Strategy Briefing We announced management plans such as business restructuring, inventory reduction, selective investments, and asset sales, and explained that we aim for a V-shaped recovery by the end of fiscal 2024.
In addition, the company implemented a restructuring to reduce 4,000 of its 40,000 employees. With regard to the management team, he explained that the management base will be strengthened by appointing human resources from the executive officers who will be responsible for cross-functional functions with the chairman and president. President Iwata acknowledged that the deterioration in business performance was a "crisis situation," but did not announce any disciplinary action to hold Chairman Tokura and the President themselves accountable.
Regarding the reduction of 4,000 employees, the minimum information was posted at the end of the Fundamental Structural Reform (Revitalization Strategy) section of the management strategy explanatory materials. On the other hand, several major media outlets have taken up the headlines about the job cuts, suggesting a high level of public interest. On May 1, when the editorial department asked the head of Sumitomo Chemical's Public Relations Department about Sumitomo Chemical's stance on information disclosure and media coverage, he replied, "We explain it in detail in the materials and briefings."
Chairman Tokura of Sumitomo Chemical is also the Chairman of Keidanren and the Chairman of the World Expo Association. Amid growing public opinion against the Expo due to the expansion of the budget for the Osaka Expo and the occurrence of the Noto Peninsula Earthquake, when he stated that he wanted to "realize a ring of 35 billion yen" and said that "the Expo and the reconstruction of Noto should be promoted at the same time," he was characterized by a bullish tone that fueled public opposition rather than consensus building.
In response to the sluggish performance of Sumitomo Chemical, some people on the Internet have questioned Chairman Tokura's management ability, with comments such as "Will he still serve as chairman of Keidanren?" and "Will he be in charge of running the Expo?" Osaka Governor Yoshimura's Inappropriate remarks In the same way, it could disrupt the momentum for the Expo.
More than 4 billion yen has been spent on public budgets to build momentum for the Expo. When the editorial department asked a question to Sumitomo Chemical's PR about the poor performance, the Osaka Expo, and the reputation on the Internet, they replied, "Our company and the Expo are different things, and we want the association to ask about the Expo."
On April 10, Sumitomo Chemical and Sumitomo Pharma, which operate the Sumitomo Pavilion at the Osaka Expo, held an event to build momentum one year before the opening of the Expo, with the participation of employees of both companies. According to the Sumitomo Group Public Relations Committee, the Expo mascot appeared at the event, and the participants were very excited report It does.
