Panasonic Corp to Cut its Global Work Force
Panasonic Corp announced during its Fiscal 2011 Financial Results presentation on 28 April 2011 that it will accelerate its business structure reforms, which will involve significant job cuts to its global work force. Panasonic’s Digital AVC Network sales declined 3% compared to the previous year but operating profit increased 32% as a result of fixed cost reduction and streamlining efforts.
Digital AVC Network is the business division that makes TVs and Panasonic has been one of the most aggressive backer of 3D technology. Euromonitor International forecasts only 11% of digital TV units sold in 2012 to be 3D-enabled because manufacturers have failed to convince consumers that 3D is more than just a gimmick. The Osaka-based company also outlined its plan to focus on BRIC markets in 2011 and 2012, which are not expected to be hotbeds for 3D TVs. Based on the lacklustre adoption of 3D TVs and Panasonic’s focus on emerging markets, cost-cutting measures and margin protection indeed form a logical approach for Panasonic as it braces itself for a tough year ahead.