Panasonic to cut 5,000 jobs in profit margin bid

JAPANESE electronics giant Panasonic yesterday said it will cut about 5,000 workers from its automotive and industrial division in a bid to bolster its profit margins.

The cuts will take place over the next three years under a plan instigated by the company’s president, Kazuhiko Tsuga.

The division, which produces car components, semiconductors, production machinery and other devices, employs 110,000 people, around a third of Panasonic’s workforce.

The business is at the forefront of Tsuga’s strategy to shift Panasonic away from consumer electronics.

“A reduction in labour costs will be a big part of our plan to improve profitability,” Yoshihiko Yamada, the head of the division said during a presentation to analysts in Tokyo.