Panasonic prepares for garage sale, to cut 10,000 jobs

Written by Reuters | Kadoma (Japan) | Updated: Nov 15 2012, 10:12am hrs
About a-fifth of Panasonic Corps 88 business units are losing money and only half so far meet a target for at least 5% operating margin, the Japanese electronics groups finance chief said in an interview on Wednesday. Hideaki Kawai said the company will axe another 10,000 jobs by end-March as it pares its costs and looks to return to profit. Panasonic shed 36,000 jobs last business year.

Our new boss has said businesses must achieve at least a 5% operating profit target within three years, Kawai said, referring to Kazuhiro Tsuga, who took over as company president in June. But we wont wait that long to tackle units that need to be dealt with. Sell-offs and business closures will start as early as next year, he told Reuters.

Kawai said Panasonic aims to earn group operating profit of at least 200 billion yen ($2.52 billion) in the year to end-March 2014 in line with forecasts by analysts polled by Thomson Reuters StarMine.