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Print 7 comment(s) - last by Jalek.. on Apr 28 at 5:14 PM

Panasonic will also close some manufacturing plants

Panasonic has long been one of the world's top consumer electronics firms and is involved in vast and varied markets ranging from consumer electronics to battery production. The company has been hard hit with tough competition from other companies in the market and from the massive earthquake and tsunami that hit Japan.

Panasonic is looking to reorganize its operations to better compete in the marketplace. The reorganization will see the electronics company shed 17,000 workers over the next two years. Currently, Panasonic has about 367,000 workers around the world. It wants that number pared back to 350,000.

The company has set aside about $1.3 billion (110 billion yen) for restructuring expenses.

Toru Hashizume from Stats Investment management said, "The figure [layoffs] is huge, but so is the company, and for an old-fashioned one like Panasonic, this is a big move."

Shedding workers isn’t the only place Panasonic is hoping to save money. The company is also going to be combining operations and closing down manufacturing plants as well. Reuters reports that Panasonic currently has about 350 manufacturing bases around the world.

Panasonic president Fumio Ohtsubo said, "I can't say for sure, but I think it's possible we will cut the number of manufacturing bases by 10 or 20 percent."

Investment analyst from Federated Advisory Services in Tokyo Masahiro Mitsui told Bloomberg, "Restructuring is inevitable after the acquisitions. Panasonic needs to boost its competitiveness even more as the energy-related businesses are getting more and more crowded with South-Korean and Chinese makers."

The acquisitions includes the $6 billion Panasonic spent last year to buy parts of Sanyo Electric Co. and Panasonic Electric Works Co. The company already has a deal in place with Tesla to make battery packs for Tesla's electric vehicles.

Bloomberg reports that Panasonic will halt new investments in both plasma and LCD display operations to revive profits in the sagging TV unit. Panasonic will also seek more alliances to purchase LCD panels. 



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RE: Slashing R&D to increase profit?
By Jalek on 4/28/2011 5:14:18 PM , Rating: 2
My plasma television's the only Panasonic anything I've purchased in many years. I don't think Samsung will be slowing down development, so this seems like a short term savings leading to a long term market exit.


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