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Furukawa Electric shifts HR strategy as AI data center demand grows

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Furukawa Electric shifts HR strategy as AI data center demand grows

3 Key Points

  1. What happened

    CHRO Hiroko Takita said Furukawa Electric moved from uniform employee development to skills that support growth businesses, and now hires mid-career talent at a scale equal to new graduate hiring.

  2. Why it matters

    The shift reflects how AI data center demand has made optical fiber and optical devices growth drivers, requiring external talent and a change from 'follow me' leadership, Takita said.

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Context & Analysis

Furukawa Electric's HR overhaul comes after its previous mid-term plan, covering fiscal 2022 to fiscal 2025, hit its financial targets even as the mix of businesses behind those numbers changed. Hiroko Takita said some businesses originally expected to grow struggled, while AI data center demand lifted optical fiber and optical devices, and the company also divested some businesses and shifted its portfolio toward higher-value products. That divergence between the plan and the outcome is what pushed the company to reorient its people strategy toward supporting specific growth businesses rather than developing all employees evenly. Takita said the company now pursues talent strategies aimed at further expanding growth businesses toward 2030, and that external hiring has become important enough that mid-career recruiting is on par with new graduate hiring. She also framed internal programs such as job postings, side jobs, and reskilling as a way to change employee mindsets, encouraging workers to sharpen skills and seek places to contribute as the environment changes. On leadership, Takita said the company began working on leader development in 2019, aiming to move away from a 'follow me' style in which leaders decided based on past experience and pulled subordinates along.

FAQ
What prompted Furukawa Electric to change its HR strategy?
Hiroko Takita said that while financial targets were met under the previous mid-term plan, the business environment changed: some originally expected growth businesses struggled while AI data center demand drove strong growth in optical fiber and optical devices.
How is Furukawa Electric hiring differently now?
Takita said the company is conducting mid-career hiring at a scale equal to new graduate hiring, whereas previously it could handle talent shifts internally.
What leadership style is Furukawa Electric moving away from?
Takita said that until around 2019, leaders with past success experience often made decisions based on their own experience and pulled subordinates along in a 'follow me' style.
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