Panasonic not quite for life

Panasonic’s “ideas for life” slogan looks a little tarnished this morning. Feb 4 saw the Japanese electrical giant trim 15,000 jobs, and closing 27 manufacturing plants. The company said it is suffering a sharp sales decline across all its business segments.

The losses being suffered have forced this 5% cut in the company’s workforce, and Panasonic’s guidance is for a net loss of Yen380bn ($4.2bn) for the year to March 31. The job losses will take place over the next year, with 50% of the cuts in Japan and the rest overseas. Last year (to March 31 2008) Panasonic made a profit of Yen281.9bn.

"Sales fell in all our business segments in the third quarter [to Dec 31]. We expect sharper sales declines in this quarter, and profits are likely to shrink in every segment," Panasonic director Makoto Uenoyama said in Tokyo.