Japanese Consumer Electronics Giant Panasonic has announced that it will reduce its employee headcount by 15,000 - that's 5 percent of its 300,000 global workforce - by March 2010 with half of it coming outside Japan
The technology company, which is the largest Plasma television producer worldwide - suffered a double whammy thanks to a stronger than usual yen and falling sales worldwide.
Panasonic estimates that it will be making a net loss of £2.9 billion for the financial year ending 31st March 2009 while the job cuts will represent five percent of Panasonic's worldwide workforce and will come as Panasonic completes the acquisition of its smaller rival, Sanyo for $9 billion.
The company, like Sony, operates mainly in the mainstream and high end of the market, the most likely to be affected by the credit crunch.
It will also be closing 27 manufacturing sites worldwide and is also likely to reduce future investment in research and development in the hope that it can reduce costs by 100 billion Yen by next year.
The strong Yen is also set to have a more profound impact on Japanese business compared to the likes of Samsung or LG, which operate in South Korea, where the Won has stayed relatively weak.
Panasonic UK Headquarters are located in Bracknell and employ 4,000 people.
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Panasonic is not the only Japanese company to suffer during the downturn. NEC has announced that it will be cutting 20,000 jobs by March 2010 while Hitachi will issue 7000 pink slips fairly soon. Sony Electronics also has been affected by the downturn slashing 16,000 jobs and closing 6 of its factories to reduce its expenses.