Panasonic will look to cut another 10,000 workers by next March as it looks to cut costs and boost profitability in many of its ailing business units.
Reuters reported Wednesday the Japanese company, which is the country's biggest private sector employer, will lay off the workers between now and end of March 2013. This is done to trim costs and improve profitability at close to 100 business units--a fifth of which are losing money currently, said Hideaki Kawai, CFO at Panasonic.
This latest round of job cuts is expected to bolster group operating profit to at least 200 billion yen (US$2.52 billion) in the year starting next April, Kawai added. But it is unlikely to meet the target of a 5 percent operating profit margin within three years set by Panasonic's president Kazuhiro Tsuga, he noted.
The company had projected in October it will lose 765 billion yen (US$9.6 billion) by the end of its current financial year, despite forecasting a 50 billion yen (US$626 million) profit. It had already reduced its overall headcount by 36,000 in the past year alone, but retains over 330,000 employees across its global organization.