Panasonic to cut 10k jobs in five months

Job cuts are part of a wider strategy to reach operating profits of 200bn yen
Publish date:

Panasonic’s finance chief has revealed that 10,000 jobs will be axed by the end of March 2013.

Finance chief Hideaki Kawai said that the job cuts are part of a wider strategy to reach operating profits of 200bn yen (£1.5bn) in the next three years. Around a fifth of Panasonic’s 88 business units are losing money, and only half so far meet a target of at least five per cent operating margin.

"Our new boss has said businesses must achieve at least a five per cent operating profit target within three years," Kawai told Reuters, referring to Kazuhiro Tsuga, who took over as company president in June. "But we won't wait that long to tackle units that need to be dealt with."

This news comes a year after Panasonic cut 36,000 jobs, some through the sale of business. Other Japanese tech firms have faced huge job cuts recently, including 11,000 workers at Sharp and 2,800 redundancies at Sony.

Just over two weeks ago Panasonic announced that it was to withdraw from the EU smartphone market, shortly after that, the company revealed that its shares fell 19 per cent after the firm forecasted a net loss of 765bn yen (£5.9bn).

Want to receive up-to-the-minute tech news straight to your inbox? Then click here to sign up for the completely free PCR Daily Digest and Newsflash email services. You can also follow PCR on Twitter and Facebook.