Sanyo to trim work force, close plants

Tokyo, July 5 | Updated: Jul 6 2005, 05:30am hrs
Struggling Japanese electronics maker Sanyo Electric Co Ltd said on Tuesday that it would cut 15% of its global work force, shutter plants and halve debt in a sweeping restructuring to return to profit. Sanyo tracks rival consumer electronics makers Sony Corp and Matsushita Electric Industrial are also cutting jobs to undergo major restructuring amid intense price competition for televisions and other digital products.

The overhaul comes after Japans third-largest consumer electronics maker posted a big loss in fiscal 2004, hammered by earthquake damage to a chip factory and sluggish sales of core products such as digital cameras and mobile phones. The challenge of reorganising Sanyos business falls on chief executive Tomoyo Nonaka and president Toshimasa Iue.

Bloomberg