Panasonic To Axe 10,000 Jobs
Hideki Kawai, CFO of Panasonic Corp. speaks after the shares plunge on November 1st.
In an interview with the CFO of Panasonic Corp., it seems that about a fifth of Panasonic’s business units are losing money and only half so far meet the 5 percent operating margin
Hideki Kawai says that the technological giant is expected to axe 10,000 jobs before March of 2013, looking to reduce its costs and return to making a profit. We’ve seen a trend with Panasonic getting rid of workers in the past few years, and this is just the middle of a larger movement of the electronic competition market. A large chunk of Panasonic was actually sold away last year and since then the business has been under performing. As of now, the company’s credit rating is close to junk.
Panasonic shares which are near decade lows slumped by another fifth in early November 1st, giving the company a four-season losing streak. The company, which is being out-competed by electronic giants such as Samsung, Sony, and LG is looking at its last desperate measure to being the business back on track. If the firm does not reach its goal of 110 billion yen in the next fiscal quarter, we may easily see the end of another decade-long electronic legacy.
References:
http://www.bnn.ca/News/2012/11/14/Panasonic-prepares-for-garage-sale-to-axe-10K-jobs.aspx
http://online.wsj.com/article/SB10001424052970204712904578091520438721316.html