Panasonic to Cut 15,000 Jobs and 5 percent of Panasonic's 300,000 workforce

Panasonic said Wednesday it was cutting 15,000 jobs, the second mass layoff in Japan's electronics sector in less than a week. It was the latest sign that Japanese companies racing to cut costs in light of the evaporation demand. Panasonic and Mitsubishi Motors also included in the list of companies who strongly revise its full year outlook Wednesday, with Panasonic now projecting a net loss of 380 trillion yen, or $ 4.2 billion for the year ended March 31 instead of 30 trillion yen profit it forecast in November 27.With Japan, USA and most of Europe, lurching in recession last year, domestic demand is weak and unlikely to get a significant boost from government stimulus measures any time soon. Moreover, Japan has a wealth of consumer decision-makers - Sony, Panasonic, Sanyo and the camera is the Canon and Nikon between them. This, and competition from Korean manufacturers like Samsung, is unusually intense competition between manufacturers in the region.

In October-December period after the credit crunch triggered by the collapse of Lehman Brothers in September, Panasonic amassed a net loss of 63.1 billion yen, compared with a profit of 115.2 billion yen in the same period last year. Panasonic will close 27 factories in Japan and abroad in an attempt to reduce costs and adjust the output level. The expected loss for the current year includes restructuring charges total 345 trillion yen, Panasonic said.

Some 15,000 jobs, or 5 percent of Panasonic's 300,000 workforce will be cut. Last week computer maker NEC announced it would cut more than 20,000 employees, the largest single group layoff announced in Japan in the current downturn. Thousands of additional job losses, lower investment and production cuts have been announced elsewhere, as corporate giants such as Sony and Toyota project significant loss for the year. As a consumer decision-makers in the world, Panasonic suffering from the collapse in demand for consumer electronics. Manufacturers in Japan have been particularly hard hit because the yen's appreciation against the dollar and euro in recent years have made their products more expensive for consumers in the United States and Europe.

Panasonic 150-inch Plasma HDTV