Latest Super Cars Photos and Pictures
New News Home عربي
Weird News Health News Cars News Sports News Information Technology News Business News World News Middle East and North Africa News
Business News - International and Global Economy News

Economy Rage: Panasonic to slash 15,000 jobs and to shut 27 plants worldwide

Economy Rage: Panasonic to slash 15,000 jobs and to shut 27 plants worldwide
Print Article
Send Article To Friend
Bookmark in Delicious Bookmark
Submit to reddit Reddit This!
Panasonic Corp. said today it will slash 15,000 jobs and shut down 27 plants worldwide to cope with plunging demand for its TVs, semiconductors and other electronics products.

The world's largest maker of plasma display TVs also announced a net loss for the October-December quarter and lowered its forecast for the fiscal year through March to a net loss of 380 billion yen ($4.2 billion), its first annual loss in six years.

Panasonic joins a slew of other major Japanese companies, including Sony Corp. and Toshiba Corp., in announcing job cuts and forecasting a full-year loss as the global slowdown batters the world's second-largest economy.

The Osaka-based manufacturer plans to cut the jobs — half of which will come in Japan — by the end of March 2010. They amount to about 5 per cent of its 300,000-strong global work force.

Panasonic also will shutter 14 overseas plants and 13 plants in Japan by the end of March to adjust production and cut costs, company spokesman Akira Kadota said.

Panasonic blamed the dismal earnings results on the global slowdown set off by the U.S. financial crisis, the rapid surge of the yen and sudden price drops. Sales slid in a wide range of products, including flat-panel TVs, DVD recorders, microwaves, lamps and semiconductors, it said.

"The company's business conditions have worsened particularly since last October, due mainly to the rapid appreciation of the yen, sluggish consumer spending worldwide and ever intensified price competition," it said in a statement.

Panasonic reported a 63.1 billion yen ($709 million) loss for the fiscal third quarter, down from a 115.2 billion yen profit the same quarter the previous year.

Quarterly sales dropped 20 per cent to 1.880 trillion yen from 2.345 trillion, with overseas sales decreasing 29 per cent, and Japanese sales down 10 per cent.

The last time Panasonic reported an annual loss was for the fiscal year ended March 2002, when a global electronics slump and massive restructuring costs contributed to 431 billion yen in red ink.

Since then, the company has been shedding money-losing businesses and focusing on key products such as plasma display TVs to turn itself around.

The company, formerly named Matsushita Electric Industrial Co., for its founder, also lowered its sales forecast for the fiscal year ending March 31, to 7.75 trillion yen from an earlier 8.5 trillion yen.

Panasonic will delay by a half year starting production at two Japan plants — one for plasma panel TVs to July 2010, and another for liquid crystal display TVs until January 2010, in response to slipping demand for flat-panel TVs, it said.

The latest restructuring measures will cost an additional 190 billion yen on top of the 155 billion yen Panasonic has already announced for the fiscal year through March.

Rival Japanese manufacturer Sony is forecasting a 150 billion yen net loss for the fiscal year through March. The last and only time Sony reported a loss — the fiscal year ending March 1995 — the red ink came from one-time losses in its movie division, marred by box office flops and lax cost controls.

Hitachi Ltd., NEC Corp. and Toshiba are also all forecasting big losses for the fiscal year.

Panasonic shares rose 1 per cent to 1,092 yen. Earnings were announced after trading ended.
Article Source: The Independent  
Related Keywords: jobs  
Subscribe to our Free Daily Newsletter & Receive the Latest Economy News by e-Mail!  

Article Rating: No Comments Yet, Be The First!  
Add Comment  
First Name:
Article Rating:

Note: Your comment does not reflect openion or the others.

Other Economy and Financial News
Recession Attack: Over Half-Million jobs lost in the US in January 2009  
Unemployment rates in Russia reaches dangerous levels  
Due to the economic crisis.. Microsoft to fire 5000 employees  
«Back to Previous Page
Economy News Home
New News Home World News Business News Technology News
Sports News Cars News Health News Weird News Arabic
Free Signup - About New News - Contact Us - Site Map - News Ticker
Copyrights © 2009
Designed & Developed by Activities InfoTech Page Rank