Panasonic Posts $4B Fiscal Year Loss, Will Cut 15,000 Jobs18 May, 2009 By: Chris Tribbey
Panasonic posted a loss of $4 billion for fiscal year 2008 (which ended March 31), and announced plans to cut 15,000 jobs and close more than 25 production facilities worldwide. In fiscal year 2007, the company posted a profit of nearly $3 billion.
Sales of audio and video equipment — which include TVs and home entertainment players — were down 6% for the fiscal fourth quarter. Overall sales were down nearly 15%.
“During the year under review, the current financial crisis, which originated in the United States, spread across the world and the company’s outlook of the business environment was extremely uncertain,” Japan-based Panasonic said in its earning report. “The company’s business conditions worsened considerably from last October, due mainly to the sharp appreciation of the yen, rapidly shrinking demand worldwide and ever-intensified price competition.”
The company did not foresee fiscal year 2010 improving too much, pointing to shrinking demand and increased competition for home entertainment products.
“The company currently expects fiscal 2010 sales on a consolidated basis to total 7,000 billion yen, a decrease of 10% from the previous fiscal year,” the company stated.