See More

Panasonic eyes job cuts in restructuring

Apr 28 2011 18:29 AFP

Related Articles

Panasonic to take over Sanyo

Panasonic to axe 15 000 jobs

Panasonic: Sanyo takeover delayed

Sanyo braces for zero profit

Sanyo to slash 1 000 workers

Samsung going green


Tokyo - Japan's electronics giant Panasonic said on Thursday it aimed to cut its global workforce to 350 000 in two years, a reduction of about 17 000 positions, in a bid to streamline its operations.

It also planned to spend $1.9bn over the next two years on restructuring in a drive to increase its global competitiveness.

The announcement came after Panasonic Electric Works and Sanyo Electric this month became wholly owned units of Osaka-based Panasonic, whose workforce numbered 366 937 at the end of March this year.

The planned job cuts will mean roughly a 10% reduction from March 2010 when Panasonic had 384 586 employees.

Company president Fumio Ohtsubo said the firm must integrate duplicated operations to boost the group's competitiveness.

"We are planning to streamline businesses overlapping with those of Sanyo," he told a press conference.

Ohtsubo did not elaborate on how the jobs would be cut, but local media said the company would offer early retirement incentives mainly at overseas production bases as well as to employees at its headquarters.

Ohtsubo said the company braced itself for tough times after the 9.0-magnitude earthquake and tsunami on March 11 ravaged Japan's northern region, which was home to many electronic parts manufacturers.

The natural disaster also battered a nuclear power plant, which has been releasing radioactive materials into the environment.

Ohtsubo said the disasters would depress Panasonic's sales in the April-June quarter by "several hundred billion yen".

"The earthquake hit many companies manufacturing materials and devices that are hard to substitute," Ohtsubo said.

"It is hard to restore (the supply chain) in a short time," he said.

He added that foreign customers' requests for verification that Panasonic products were not contaminated with radiation could delay restoration of the supply chain.

But the company managed to swing back to profit in the year to March, thanks to brisk sales offsetting the yen's strength and the impact of the March 11 disasters.

It reported ¥74.0bn in group net profit for the fiscal year, reversing the net loss of ¥103.5bn a year earlier.

Operating profit surged 60.3% to ¥305.3bn with sales up 17.2% at ¥8.69 trillion, it said.

Panasonic gave no forecast for the current fiscal year to March 2012, saying: "It is difficult to assess the impact of the Great East Japan Earthquake."

panasonic  |  japan  |  job cuts



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:


Fin24 has teamed up with Ian Mann, ace business book reviewer and author of the best-selling book “Managing with Intent,” to host the second Best Business Books Breakfast of the year where Ian will show you how to lead and attract.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Facebook as a tool for small business is:

Previous results · Suggest a vote