Pioneer's two top executives are resigning to take responsibility for the company's poor business results and predicted loss this year.
Kaneo Ito, president, and Kanya Matsumoto, chairman, will leave those positions on January 1, 2006, the company said in a statement. Ito will be replaced by Tamihiko Sudo, currently an executive vice president of Pioneer. No successor was named for Matsumoto. Both will stay with the company, Ito as an advisor and Matsumoto as a director.
"This change in management is an indication of their assuming responsibility for the steep decline in Pioneer's financial performance due to the smaller-than-planned number of units sold of plasma displays and DVD recorders, both strategic products," the statement said.
Competition in the flat-screen TV market and DVD recorder market, which are both major product lines for Pioneer, has been pushing down prices and this has been hitting the company, it said in October when it announced its half-year results.
Pioneer manufactures the SuperDrive DVD-burning optical drive included in some Macs.
Pioneer reported a ¥12.3 billion ($109 million) net loss for the six months from April to September this year compared with a ¥4.8 billion net profit in the same period last year. For the full year the company expects a net loss of ¥24 billion against a net loss of ¥8.8 billion last year.