Panasonic Will Lay Off 17,000 and Cut Costs on Panels

Posted Mon May 2, 2011 at 10:00 AM PDT by Dick Ward

The company is doing a bit of restructuring in order to keep profits high.

Panasonic may have made a tidy profit of 74 billion yen this year, but considering their loss of 103.5 billion last year, they're not taking any chances. The company is restructuring and cutting costs across the board.

Unfortunately, some of those cuts are coming in the form of layoffs. The company will scale back from 366,937 employees to 350,000 by this time in 2013. Panasonic will be purchasing more LCD panels from other manufacturers and move one of its Japan based production lines to China to save on costs.

Panasonic says that the biggest sales decrease was in mobile phones and digital cameras, with Blu-ray recorders doing favorably.

Panasonic also commented on the disaster in Japan, stating "Panasonic continues to extend a helping hand to the people in the affected region, and at the same time, it is accelerating its efforts to restore its operations to normal state and prepare itself for future disaster risks."

Source: TWICE

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Tags: Layoffs, Profits, Panasonic (all tags)