Panasonic to lay off 10,000 employees in attempt to restore profitability
During the last fiscal year, Panasonic already let go of 36,000 workers. During an interview with Panasonic’s CFO Hideaki Kawai, he announced that another 10,000 unlucky employees of the group will be sent on their way before the end of March 2013.
Panasonic have continued to bled money amongst stiff competition from both China and Korea, who specialize in undercutting competition with their price war strategies. This combined with the murky economic state has been more than a small burden on the Japanese electronics maker.
Hideaki Kawai let on that 1/5 of the 88 business departments which the group oversees are unprofitable, and only 50% of the company are able to achieve the expected operating profit of at least 5% per annum. Starting from next year, Panasonic plan on selling off some of their non-core businesses, and directly close those which have no selling value.
The CFO explained how the current plans for the group was to reach a minimum of 200 billion Yen (approx. 2.52 billion USD) by the end of the fiscal year ending in March 2014.
In the fiscal year of 2011, Panasonic’s losses amounted to 10 billion USD, the largest loss in history for the company. However with some amount of effort, Panasonic was able to turn this around and had a profitable 1st quarter of this year, making net profits of 12,81 billion Yen.
However, the future is bleak for the electronics group as Panasonic’s profit estimate released last month shows expected losses of 10 billion dollars by the end of the current fiscal year in March 2013. By this fated date, Mr. Kawai plans on selling off 110 billion Yen’s worth of property, consisting of mainly land and real estate.
Industry analysts claim that this selling off of assets will provide Panasonic with the liquidity it requires to reshuffle its organization’s deck in the coming months.