SAN JOSE, Calif. - Amid a large loss and a complex reorganization, Japan's Panasonic Corp. plans to cut about 17,000 jobs over the next two years.
Panasonic has already cut 17,600 jobs the past year, according to Dow Jones. It expects the group's total employees will be at the 350,000 level.
Panasonic expects the restructuring charges will be the 110 billion yen ($1.3 billion) level in fiscal 2012 and the 50 billion yen ($612 million) level in fiscal 2013.
''Panasonic will review overlapping businesses within the group and consider consolidation or transfer them to outside companies. At the same time, Panasonic will reorganize its bases and reassign its personnel, as the reorganization involves consolidation and streamlining at the group's head offices and all business domains,'' according to the company.
To restructure the company's lithium-ion battery business, the company will shift production to China. The company will invest 55 billion yen ($673 million) through fiscal 2013 in China, including construction of a new factory in Suzhou.
Panasonic will increase purchase of LCD panels from outside vendors and transfer a production line of its third domestic PDP plant in Amagasaki City in Japan to China.
Panasonic is shifting the production to China which means they want to cut production cost. This clearly shows that they are in trouble and want to save on production cost. I haven't seen companies laying off people when they are doing good.
Actually corporate jobs in Japan have a strange and secret habit of disappearing at around age 50, just like they do in the US.
34,600 jobs in 3 years is ~3% a year and only slightly above normal attrition. Probably balanced in whole, or in part, by new hires directly from schools.
There are loyal customers to this brand. Their quality is good. They will enjoy this for ever and we can expect to see more innovations in their range of products. So reducing number of jobs means mostly many things are automated and that is the reason
i do not read anywhere in this article that Panasonic is in trouble. They are only restructuring to make themselves more profitable. They can spend more money in invention and innovation if they can save some pennies in production cost. And if i read this article correctly then they are not laying off people. They are only cutting some of the existing jobs!
Loyality to company has been fading since the decade long recession in Japan. It's been happening since the 90's. Panasonic has been dominating consumable market for sometimes. As the rise of various brand including Samsung, the price of Panasonic product can't maintain. However good the product quality is, innovation and competition to the key of company growth after millennium. I hate to see a good brand fails. I wish Panasonic will recover soon.
That represents about 10% over the last year. We hear about companies in the US all the time laying off 10%, even though this is a large number of people. I don't think that they are going away any time soon.
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