November 14, 2012
Reuters is reporting today that Japanese electronics powerhouse Panasonic (NYSE: PC ) will lay off 10,000 workers by the end of March -- more than 3% of its work force. These job losses follow on cuts of 36,000 jobs, Reuters reports, some accomplished through sales of business units, in fiscal 2011.
The company lost $9.4 billion in the fiscal year ending March 2012, and losses have accelerated as the current year progressed, with the company warning of a probable $10 billion loss this fiscal year. So far, the past year has seen Panasonic lose $17 billion over the past 12 reported months.
Panasonic CEO Kazuhiro Tsuga hopes to reverse this trend, and not just stop losing money, but achieve a $2.5 billion operating profit next fiscal year. Ultimately, Panasonic thinks it can be regularly earning 5% operating profit margins within three years. Steps aimed at reaching this goal include the above-mentioned layoffs, sales of some underperforming business units, and closures of others. Moneys raised from unit sales will be applied to paying down Panasonic's $13.5 billion debt.