Tokyo/New Delhi: Japanese consumer electronics major Panasonic Corp will slash thousands of jobs worldwide as part of "drastic" restructuring efforts.
Even though the company has not disclosed specific details, nearly 35,000 jobs are expected to be culled in three years to 2013. The company today said it expects to have a workforce of about 3,50,000 people by the end of March 31, 2013.
At the end of March 31, 2010, Panasonic had a total headcount of 3,84,586. However, it was not clear how many jobs have already been slashed. "When the drastic group-wide reorganization is completed, Panasonic will have an optimum structure that enables the group to effectively pursue new growth strategies...
"It expects the group's total employees will be the 3,50,000 people level as it will build an organization with global competitiveness," Panasonic said in a statement.
Panasonic has a good presence in India but it was not clear whether the restructuring would impact its Indian operations. The spokesperson was not available for comment. The firm noted that the reorganisation involves consolidation and streamlining at the group's head offices and all business domains.
"Panasonic expects the restructuring charges will be the 110 billion yen level in fiscal 2012 and the 50 billion yen level in fiscal 2013," it added. According to the company, it expects to see sales of 100 billion yen in fiscal 2012 in India and touch 200 billion yen in fiscal 2013.
"... in India, where the group plans to double its sales in the second year of its India project that aims for a large increase in sales, it will accelerate its initiatives in the strengthening of its product lineup and marketing structure as well as opening of B-to-B showrooms," the statement said.
The group aims for sales of 615 billion yen in fiscal 2012 from BRICS (Brazil, Russia, India and China), Vietnam and MINTS (Mexico, Indonesia, Nigeria, Turkey and Saudi Arabia), Vietnam and the Balkans.
For the year ended March 31, Panasonic recorded a profit of about 74 billion yen, much lower than over 100 billion yen registered in the year-ago period.