Panasonic Will Fire 6,850 People at Japanese Headquarters

Those who hoped Panasonic would reconsider its plans for massive layoffs at its headquarters in Japan will be disheartened to learn that the corporation did not, in fact, change its mind.

It was back in early July that a Japanese-language J-cast report said that Panasonic was going to fire more than 6,000 people at its Japanese headquarters.

The move is a consequence of the net losses in 2011 and the subsequent reshaping of the entire infrastructure.

There are now nine business domain companies: AVC Network Company, Appliances Company, System & Communications Company, Eco Solution Company, Automotive System Company, Industrial Devices Company, Energy Company, Healthcare Company, and Manufacturing Solutions Company.

The only division meant to handle marketing is called Global Consumer Marketing Sector.

According to Digitimes, the only staff members that will continue to work at the headquarters in Japan will be those from the finance department.

Thus, since they number only 150, the other 6,850 will have to take their leave and find work elsewhere.

We aren't quite sure what to think about this massive layoff spree that will leave Panasonic without its R&D, production and purchasing arms in the region. Regardless, the layoffs will begin on October 1.

"It is easier for them to obtain profits than before (after a round of restructuring), but it is too soon to say from one quarter that Panasonic now has a structure to generate profits," said Takashi Oba, senior strategist at Okasan Securities.

"Their outlook doesn't suggest a solid turnaround is under way. It continues to be tough for them," said Makoto Kikuchi, CEO of Myojo asset management in Tokyo.

We admit that there is a point in what these people say. The profits generated in the June quarter were mostly a fluke. Sales still decreased 6% and $164 million / 133 million Euro don't nearly compensate for the $9.7 billion (7.91 billion) lost last year.