Panasonic to cut 40,000 jobs, closes dozens of plants

Japanese consumer electronics giant Panasonic Corp will slash 40,000 jobs over the next two years in a bid to pare costs and keep up with ever-harsher competition from Asian rivals, a source said.

The company, which employs about 380,000 people, will incur more than 100 billion yen ($1.22 billion) in expenses this year related to the job cuts and a reorganisation of production facilities, the Nikkei newspaper reported earlier.

Once unrivalled, Japan's consumer electronic firms are facing increasing competition from Korean and Chinese producers in particular. Panasonic is seeking to shift its focus to environmental and energy-related businesses such as rechargeable batteries in order to duck competition fromSamsung Electronics, LG Electronics and others in consumer technology.

As part of that strategy, it announced last year it would make Panasonic Electric Works and Sanyo Electric Co wholly owned units last year, absorbing a combined 160,000 workers, the Nikkei reported.

Panasonic is now seeking to shed staff in overlapping businesses, particularly abroad, it added. The units make a wide range of products including rechargeable batteries, factory robots, electronic components, lighting and solar panels.

Panasonic announces its earnings for the year ended on March 31 at 0600 GMT on Thursday. President Fumio Ohtsubo will speak to the media about the company's future direction from 0810 GMT.