Sanyo to cut 14,000 jobs

Sanyo to cut 14,000 jobs

Japanese electronics firm Sanyo is reportedly considering cutting its workforce by a massive 15%. The figure comes to around 14000 workers and this is part of their massive restructuring process as the company is working towards entering new fields. The company also said that it would be closing down or sell its 20% its factories in Japan which employees around two-third of their workforce.

The aim is to cut costs and liabilities worth over USD 626 million. They are keeping separate around 90 billion yen for the restructuring process. The company specializes in developing digital cameras and mobile phones and is now looking ahead in the field of environment friendly products. These new areas include development of Solar panels and rechargeable batteries.

Sanyo reported weak sales of digital cameras and mobile phones which had pushed their losses to USD 1.55 billion for the last year ending in march 2005. This new initiative to cut costs and restructure would take around 3 years. They are not alone in the market to suffer due to dampening sales. Competition in the form of Sony, Fujitsu, Toshiba and Hitachi have all reported slowing down sales in their electronics department.

The company in the short term plans to end the losses and return back to profitability by 2007.