Report: Panasonic May Cut Another 8,000 Jobs Next Year

By FOXBusiness

Panasonic (NYSE:PC) is reportedly considering cutting another 8,000 jobs next year as part of a corporate restructuring aimed at saving costs and revamping the company’s softening sales, according to a report by Bloomberg.

Japan’s second-largest television maker, which has already axed more than 8,800 jobs this year as part of a plan to cut a total of 10,000 by March 31, is planning to widen its scope of cuts next fiscal year as looks to speed up overhaul plans, according to the report, which cites Japan-based Panasonic spokesman Atsushi Hinoki.

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A U.S.-based Panasonic spokesman declined to comment.

The struggling consumer electronics giant saw its credit rating cut two notches to BBB by Standard & Poor’s earlier this month after it forecast a worse-than-expected loss of $9.5 billion for the year ending March 31 and said it would not pay a dividend for the first time in more than 60 years as it looks to improve its financial position.

S&P attributed the downgrade on Panasonic’s long-term debt to its bleak outlook and an anticipated slow recovery of consumer electronics. Panasonic and rivals in the market including Sony (NYSE:SNE) have struggled to stay afloat amid rising competition and softening demand.

Also earlier this month, Moody’s Investors Service placed its credit ratings on Panasonic under review for a possible downgrade, citing increasing concern that “sluggish demand intense competition” would continue to pressure its earnings and leverage.

The full-year loss guidance is mostly a reflection of restructuring costs, and the new round of job cuts have reportedly been factored into that, according to Bloomberg.