Japan's Rakuten Inc. said June 11 that it plans to reorganize its corporate structure by combining its various businesses into five units, with an aim to streamline operations, boost productivity and maximize synergies.
Under the reorganization, which takes effect July 1, Rakuten's card and payment, bank, insurance, and securities businesses will be combined into a single financial technology group company that allows for added cooperation between their services.
The e-commerce business, along with the life and leisure operations, will be integrated under a commerce group company emphasizing an online-to-offline strategy.
The media and communications operations, together with the sports business, will be revamped into a communications and energy company to lead Rakuten's mobile communications businesses. Those reorganized operations will also result in the formation of a media business company, which will develop the group's advertising, media and sports businesses.
Meanwhile, the investment and new service development operations will be combined into an investment and incubation company.
This will consolidate Rakuten's structure from its current 10-company system. The resulting five companies may be given new names later.
Rakuten said in a statement that it has been working to optimize the wide range of services offered within its ecosystem, which are accessed through a common customer ID.
The group added that as a result of the reorganization, "each company responsible for a strategic business domain will be able to develop its business more dynamically, while maintaining accountability and transparency, and enhancing global competitiveness."
