Panasonic Corp of Japan has earmarked to spend 250 billion yen in the next two years. The expenditures are for restructuring to revive the company but the plan did not provide for any spending to be done for job layoffs.
In a press conference held in Tokyo, Panasonic President Kazuhiro Tsuga reported that he wanted to expand the company's automotive and housing businesses as it withdraws from the consumer electronics market. This is inline with its mid-term business plan.
The television unit of the Japanese firm has been severely battered by lower cost units from Korea. Like its contemporaries Sony and Sharp, it has steadily lost market share due to cheaper high quality imports. It is also Japan's largest commercial employer and its expected second straight annual net loss pressures the board to withdraw from lost markets and cut back on employees salaries, which despite the latest 40,000 job cuts in the past two years still totals over 300,000 individuals.
Panasonic is still seeking external investment partners, especially in its healthcare business. It would also be divesting its interests in its logistics business Nippon Express Co. Ltd.
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