Panasonic to cut 10,000 more jobs to earn profit

Panasonic to cut 10,000 more jobs to earn profit

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Electronics manufacturer Panasonic’s 88 business units are losing money. So far just half of these units have met the 5% operating margin. The information on the financial condition of the company was given by the Japanese electronic group’s financial chief Hideaki Kawai in an interview on November 14, 2012.

Hideaki said that the country’s largest commercial employer is now set to cut another 10,000 jobs by the end of March 2013, as it pares its costs and is looking forward to profit. Last year the company cut 36,000 jobs. with some of these coming through sales of its businesses.

Kawai added, “Our new boss has said businesses must achieve at least a 5% operating profit target within three years”. The new boss being  referred to is Kazuhiro Tsuga, who took over as the company’s president in the month of June, 2012. The financial chief also said that they will not wait for the whole three years to tackle units which need to be dealt with.

It is expected that by early next year business closures and sell-off’s will start taking place. The company now aims to earn profits in the range of at least 200 billion yen by the end of March 2014.

Last month Panasonic also warned that it will lose assets and goodwill worth close to $10 billion in relation to its mobile phone, solar panel and small lithium battery business.