Panasonic plans to axe 15000 jobsFebruary 5th, 2009 - 4:13 pm ICT by Amrit Rashmisrisethi
Earlier 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.
- Sony announces $3.1 billion annual loss - May 27, 2011
- Japan's Panasonic projects wider loss for current fiscal - Feb 03, 2012
- Panasonic returns to profit in first quarter - Jul 29, 2010
- Japan's Panasonic to scale down TV business - Oct 20, 2011
- Sony forecasts wider loss for fiscal 2011 - Feb 02, 2012
- Panasonic incurs first annual loss in six years - May 15, 2009
- Thank you India, says Japan with an exhibition - Mar 16, 2012
- Panasonic begins takeover of Sanyo - Nov 05, 2009
- Mazda plans $1.25 bn capital increase - Feb 21, 2012
- Hitachi to form new JV in India - Sep 27, 2011
- Suzuki profits up for full year - May 10, 2010
- Hitachi aims to double revenues, acquire firms - Sep 04, 2011
- Olympus to cut 2,700 jobs - Jun 09, 2012
- Honda Motor quarterly net profit surges - Jul 31, 2012
- Toyota predicts return to black this year despite recalls - Feb 04, 2010
Tags: 1 billion, axe, braces, business conditions, consumer spending, dozens, giants, global economic crisis, hitachi, japanese exporters, losses, makoto, nec, panasonic, plants, price competition, recessions, sony corp, workforce, yen