Thursday, May 30, 2013: The Japanese electronics company, Panasonic will cut around 5,000 workers from its automotive and industrial division with an aim to boost its operating profit margin to a 5 per cent minimum in next three years.
At present, the automotive and industrial division that manufactures automotive components, semiconductors, production machinery and other devices, employs 110,000 people, which constitute nearly one third of Panasonic’s total workforce.
The restructuring is done as part of the company’s strategy to change focus from consumer electronics to building gadgets and machinery for other companies.
“A reduction in labor costs will be a big part of our plan to improve profitability,” reports Yoshihiko Yamada- the head of the automotive and industrial division during a presentation to analysts and investors in Tokyo.
Panasonic reported a net loss of 754 billion yen ($7.4bn/£4.9bn), for the fiscal year that ended in March, which fell down from 772.2 billion yen in the previous year. Company’s combined sales dipped by 7 per cent to 7.3tn yen with domestic sales registering by 9 per cent decline and overseas sales showing a 5 per cent fall.
