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Panasonic to sell off unprofitable business units and axe 10,000 jobs

Published on Nov 14, 2012 4:56 PM
The logo of Panasonic Corp is seen behind trees outside its showroom in Tokyo on Nov 14, 2012. Panasonic Corp, Japan's biggest commercial employer, will lay off 10,000 more workers in the year ending next March in a bid to trim costs and boost profitability at close to 100 business units, a fifth of which are losing money, its chief financial officer Hideaki Kawai told Reuters. -- PHOTO: REUTERS

KADOMA, Japan (REUTERS) - About a fifth of Panasonic Corp's 88 business units are losing money and only half so far meet a target for at least 5 per cent operating margin, the Japanese electronics group's finance chief said in an interview on Wednesday.

Mr Hideaki Kawai said the country's biggest commercial employer will axe another 10,000 jobs by end-March as it pares its costs and looks to return to profit.

Panasonic shed 36,000 jobs last business year, some through the sale of businesses.

"Our new boss has said businesses must achieve at least a 5 per cent operating profit target within three years," Mr Kawai said, referring to Mr Kazuhiro Tsuga, who took over as company president in June.

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