Osaka, Japan (AHN) – Panasonic said on Thursday it would continue to cut thousands of jobs as part of a three-year restructuring program related to its acquisition of Sanyo.
The Japanese company will eliminate 17,000 positions over the next two years, putting the total number of workers removed under the reorganization to about 35,000.
Panasonic made the announcement as it reported a fiscal 2011 net income of 74 billion yen ($906 million), up from a loss in the previous year despite price competition, increasing cost of materials and the disasters in Japan.
The company said supply chain issues remain in the domestic market, which was subdued even before the quake last month triggered a tsunami and a nuclear meltdown.
The electronics manufacturer said fiscal revenue grew 17 percent to 8,692.7 billion yen, due largely to sales from Sanyo and growth in emerging markets such as China and India. Overseas sales rose 22 percent to 4,178.4 billion yen.
As part of its restructuring, Panasonic is paring its five business segments to three: consumer, components and devices, and systems.
It has set ambitious goals for its new business model, such as increasing sales of its security and communication products by at least 129 percent to 1.2 trillion yen by 2013.
In addition, the company plans to raise profitability of its lithium-ion battery business by transferring production to China, where it will invest 55 billion yen.
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