Japanese electronics giant
has announced a bewildering array of executive changes after
a massive 371 billion yen ($4.1 billion) third-quarter loss Tuesday.
The company, which has been battered by the global economic downturn, also expects its worst-ever full-year loss of $7.8 billion for the fiscal year through March, a stark contrast to the $16.9 billion profit it forecast in October.
After recently announcing 7,000
and a major global restructuring plan, the Tokyo-based firm is now overhauling its management team, reshuffling more than 20 executives.
Hitachi is even swapping out executives in high-profile positions such as that of chief technology officer (CTO) and chief information security officer (CISO).
Naoya Takahashi has been appointed Hitachi's CTO and CISO. These roles are currently held, respectively, by Junzo Kawakami and Manabu Shinomoto. Kawamaki will now become an adviser to the firm, and Shinomoto will become CEO of Hitachi Kokusai Electric, according to a statement.
Previously Takahashi was executive vice president of the company's information and telecommunications systems group.
In the U.S., Hitachi's Global Storage Technologies subsidiary appointed its CFO Stephen Milligan as president, taking over from Hiroaki Nakanishi, who will remain chairman while also working as Hitachi's executive vice president for global strategy.
Despite Hitachi's third-quarter loss, the firm's shares rose $1.38, or 5.08%, to $28.54 in Tuesday trading, possibly as a result of its restructuring efforts.
The slew of management changes, which will take effect in April, aim to breathe life into Hitachi's business at a time of massive economic uncertainty.
The technology manufacturer, which competes with
, has suffered falling demand across its product lines, including processors, software services, electric power systems, computer disks, auto parts and fine metals.
"Turmoil in financial markets spread to the real economy and industrialized nations experienced rapid economic downturns," said Hitachi, in a statement.
Such is the extent of the U.S. financial crisis that even previously robust emerging economies are now feeling the strain. Sales in Hitachi's home market also plummeted along with the rest of the world.
Japan witnessed a rapid economic downturn due to a large contraction in demand, which was highlighted by much lower exports," Hitachi said in its statement. "Companies also slashed capital investment amid the turmoil in financial markets and as corporate earnings declined."
Hitachi's Japanese third-quarter revenue plunged 14% compared to the prior year's quarter, although this was not as dismal as the firm's performance in North America and Europe, where sales dipped 18% and 30%, respectively.
The company's results drove the company's stock to its lowest level in 29 years during Tokyo trading Monday.