Panasonic announces 15,000 job cuts

Major loss leads to worldwide cost-cutting exercise

Panasonic has announced that it is to cut 15,000 jobs worldwide, in a bid to reduce costs.

Half of the job cuts will be made in Japan, with the other 50 per cent going overseas. It is unknown what the impact will be to the company's workforce in the UK.

Currently, Wales employs most of Panasonic's UK contingent, with 1,000 employed in Cardiff and 500 in Newport.

Sharp sale declines

The job cuts have been announced just as Panasonic is expected to post major losses, in the region of 30 billion yen (£2.9 billion).

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

The job losses, among other cost-cutting initiatives, are expected to save the company around 100bn yen (£10 billion) in the next financial year.

Despite its money woes, the company is still in talks to buy rival company Sanyo for a reported £6 billion.

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