Panasonic plans to axe 15000 jobs

February 5th, 2009 - 4:13 pm ICT by Amrit Rashmisrisethi  

Panasonic LogoEarlier this week, Japan’s Panasonic Corp said the company will be 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.

The company expects a net loss of 380 billion yen 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. They will also be shutting 27 plants by the end of March and expects further closures next year, a Panasonic director, Makoto Uenoyama, said.

15,000 job cuts, which is likely be completed by March 2010, in Japan and the rest overseas, Mr Uenoyama said. Both temporary and regular workers will be affected.

The announcement came just days after Japanese IT giants NEC and Hitachi said they were cutting a total of 27,000 jobs. Sony Corp last month announced plans to reduce its workforce by about 16,000 people.

Panasonic posted a net loss of 63.1 billion yen for the fiscal third quarter to December, against a year-earlier profit of 115.2 billion yen, as revenue slumped 20 per cent due to weak demand and a strong yen.

‘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,’ a company statement said.

Many major Japanese exporters are going through big losses this year.

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