Panasonic to cut 10,000 jobs by March 2013

Japanese company expects $10 billion annual loss

Despite cutting 36,000 jobs last year, Panasonic's CFO has stated another 10,000 employees will be shown the door by March 2013

The globally recognised Japanese electronics giant has around 88 business units under its substantial umbrella - with about a fifth of these badly losing money.

Panasonic estimates facing a $10 billion annual loss in the year to March 2013.

In an interview with Reuters, chief financial officer Hideaki Kawai said sell-offs and business closures will start early next year in an attempt to turn the loss around.

He said the aim is to turn the annual loss into a $2.52 billion operating profit in the year ending March 2014.

"Our new boss [Kazuhiro Tsuga - who took the helm in June] has said businesses must achieve at least a 5 percent operating profit target within three years," he said. “But we won't wait that long to tackle units that need to be dealt with."

Panasonic is known for producing a large amount of impressive tech, from the premium 60-inch Smart Viera TV to the Panasonic Lumix TZ30 compact camera.

The company also plans to offload 110 billion yen worth of assets (including buildings, and land) before the end of March.

There are positive signs for the company – its July quarterly report showed profits of $164 million - but it’s hardly enough to make this yearly loss look any less dire.

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Via: Reuters