Panasonic May Cut More Jobs as $9.6 Billion Loss Forecast

Panasonic Corp., Japan’s third-biggest employer, eliminated almost 39,000 jobs in the past year, and its chief financial officer said the TV maker doesn’t plan another round of cuts. Investors say it has to.

Even after reducing its workforce by about 11 percent --almost double the reductions at Sony Corp. and Sharp Corp. combined -- Panasonic will post a 765 billion-yen ($9.6 billion) loss in the year ending March 31, the company said yesterday. Panasonic plunged the most in at least 38 years in Tokyo trading today, making it the biggest percentage loser in the MSCI Asia-Pacific Index (MXAP), and Moody’s Investors Service said it will review the company’s debt for a potential downgrade.

“They have to cut, cut, cut,” said Edwin Merner, president of Atlantis Investment Research Corp. in Tokyo, which manages about $300 million in assets. “They’re not doing it fast enough. You have to be lean and mean.”

The projected second-highest loss in Panasonic’s history prompted the Osaka-based company to skip a dividend for the first time since 1950 because of an “urgent need” to improve its financial position.

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

REPLACEMENT INTERCOM SYSTEM WITH BUILT-IN MP3 DISTRIBUTION

REPLACEMENT INTERCOM SYSTEM WITH BUILT-IN MP3 DISTRIBUTION

RETRO-M is designed to replace existing Home Intercom Systems and operate on existing 3 and 4 wire systems. BLUETOOTH you music by adding the BT-RECEIVER. No need to remove existing master wall housing, trim plates available to cover those large holes. The RETRO-M intercom unit has a built-in AM/FM radio. Plug in mp3 players such as iPod, iPhone, Zune or any other hand held player into the master and share your music with the entire family. Choose between two music sources; listen to the radio in one room and the mp3 in another room.