Panasonic to cut 15,000 jobs
February 05, 2009
TOKYO: Japan’s Panasonic Corp said on Wednesday it was cutting 15,000 jobs and closing dozens of plants worldwide as it braces to fall deep in the red due to the global economic crisis.
Panasonic expects a net loss of 380 billion yen ($4.2 billion) in this financial year to March as recessions in major economies from Japan to Europe and the United States prompt consumers to cut their spending.
The group will shut 27 plants by the end of March and expects further closures next year, a Panasonic director, Makoto Uenoyama, said. “We expect to close about 20 per cent of our 239 outlets worldwide,” he told reporters. “The next fiscal year could be tougher than this year.”
About half of the 15,000 job cuts, which will be completed by March 2010, will be in Japan and the rest overseas, Uenoyama said. Both temporary and regular workers will be affected.
The company said there was no change to its plan to buy struggling rival Sanyo Electric Co for up to nine billion dollars.
Panasonic has enjoyed brisk sales of plasma televisions, mobile telephones and digital cameras in recent years, but it has not escaped the industry turmoil sparked by the global economic crisis.
“Now is a once-in-a-century situation,” Uenoyama said. “In order to overcome this situation, we will carry out restructuring more than ever. We hope to recover faster than any other company.”
Panasonic aims to cut costs by 100 billion yen this year to March, but needs further savings of 200 billion yen next year to return to profit, he said.
The huge layoffs came just days after Japanese IT giants NEC and Hitachi said they were cutting a total of 27,000 jobs. Sony Corp has announced plans to reduce its workforce by about 16,000.
Panasonic, which changed its corporate name from Matsushita Electric Industrial in October to boost its profile, posted a third-quarter net loss of 63.1 billion yen, against a year-earlier profit of 115.2 billion yen.
Panasonic expects a net loss of 380 billion yen ($4.2 billion) in this financial year to March as recessions in major economies from Japan to Europe and the United States prompt consumers to cut their spending.
The group will shut 27 plants by the end of March and expects further closures next year, a Panasonic director, Makoto Uenoyama, said. “We expect to close about 20 per cent of our 239 outlets worldwide,” he told reporters. “The next fiscal year could be tougher than this year.”
About half of the 15,000 job cuts, which will be completed by March 2010, will be in Japan and the rest overseas, Uenoyama said. Both temporary and regular workers will be affected.
The company said there was no change to its plan to buy struggling rival Sanyo Electric Co for up to nine billion dollars.
Panasonic has enjoyed brisk sales of plasma televisions, mobile telephones and digital cameras in recent years, but it has not escaped the industry turmoil sparked by the global economic crisis.
“Now is a once-in-a-century situation,” Uenoyama said. “In order to overcome this situation, we will carry out restructuring more than ever. We hope to recover faster than any other company.”
Panasonic aims to cut costs by 100 billion yen this year to March, but needs further savings of 200 billion yen next year to return to profit, he said.
The huge layoffs came just days after Japanese IT giants NEC and Hitachi said they were cutting a total of 27,000 jobs. Sony Corp has announced plans to reduce its workforce by about 16,000.
Panasonic, which changed its corporate name from Matsushita Electric Industrial in October to boost its profile, posted a third-quarter net loss of 63.1 billion yen, against a year-earlier profit of 115.2 billion yen.
