Panasonic to Cut 15,000 Jobs, Post $4.2B Loss

Panasonic will cut 15,000 jobs (5 percent of its workforce) by March 2010 and expects to post an annual loss of $4.2 billion, according to the Washington Post.

The Japanese company, the No. 1 manufacturer of plasma TVs, says its problems relate to a stronger yen and diminishing demand.

Panasonic is also closing 13 manufacturing sites in Japan and 14 abroad by the end of March. Half of the job cuts will come in Japan.

“Business conditions have worsened particularly since last October, due mainly to the rapid appreciation of the yen, sluggish consumer spending worldwide and ever-intensified price competition," Panasonic says in a statement.

Panasonic joins a growing list of mainstream consumer electronics brands that are reporting their effects from the global economic crisis:

• Bose Corp. will cut its workforce by 1,000 (about 10 percent of total workforce)
• Microsoft is slicing 5,000 jobs (about 5 percent of its workforce)
• LG Electronics reported an operating loss of $228 million for its fiscal fourth quarter
• Sony’s net profit plunged 95 percent for its most recent quarter, including its first-ever operating loss

Sharp and Sony, meanwhile, will delay its planned joint venture on LCD production and sales by one year.

For what it’s worth, high-end control manufacturer Crestron had the best sales month in its 40-year history in December with 26-percent growth over December 2007.