Panasonic Big Losses & Staff Cuts

5 Nov

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Panasonic has reduced its workforce by about 11% in the past year, cutting nearly 39,000 positions, yet it still forecasts a Y780bn ($10.2bn) full-year loss, the largest in its 94-year history. Analysts and investors expect the beleaguered company will have to cut more jobs. “They have to cut, cut, cut. They’re not doing it fast enough,” said Edwin Merner of Atlantis Investment Research, according to a Bloomberg report.

The new projection for the financial year ending in March was nearly double Panasonic’s previous loss forecast of Y420bn, issued in November. Until then, the company had been expecting to end the year with a small profit.

Deteriorating revenues at Panasonic’s television business have forced it to scale back production and write off past investments in the sector. Other Japanese electronics groups are facing similar problems: this week Sony and Sharp also forecast multibillion-dollar losses for the year.

The new projection for the financial year ending in March was nearly double Panasonic’s previous loss forecast of Y420bn, issued in November. Until then, the company had been expecting to end the year with a small profit.More

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