Japan-based electronics manufacturer Panasonic is planning to reduce its workforce in the semiconductor business by 50 percent. This means that around 7,000 of its employees will be left unemployed and this will be carried out by March 2015.
Sources have also revealed that the company will sell some of its factories. The majority of job losses will be abroad and the company's employees in Japan will be shifted to other businesses. Panasonic owns chip-making plants in Indonesia, China, Malaysia and Singapore.
Panasonic is already in talks with Tower Jazz from Israel – which is the manufacturer of integrated circuits – and the two companies are discussing the possibility of selling overseas facilities. In recent times, Panasonic's semiconductor business has been facing a downfall and financial losses, as it faced fierce competition from Taiwanese and South Korean makers.
Additional reasons for poor sales are economic slowdown and low sales of flat-panel TVs. The sources of the company will be shifted to auto- and housing-related businesses, which have a brighter future in the upcoming period. The company is also expected to cut or even stop making chips at three of its plants in Japan. More reports have said that the system LSI business of Panasonic will be merged with Fujitsu into a new company.
Photo Credits: Live Mint