Panasonic Corp said it will cut around 5,000 workers from its automotive and industrial division in a bid to bolster its operating profit margin over the next three years to a 5% minimum set by the company's president, Kazuhiko Tsuga.
The division, which covers automotive 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 to building gadgets and machinery it sells to other companies.
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"A reduction in labor costs will be a big part of our plan to improve profitability," Yoshihiko Yamada, the head of the automotive and industrial division said during a presentation to analysts and investors in Tokyo.
($1 = 102.3500 Japanese yen)
(Reporting by Tim Kelly; Editing by Daniel Magnowski)