Japanese corporation Panasonic announced significant changes that will occur within the company. The changes will affect both the structure of the company and the number of employees. The main reason for the changes was the desire to increase the profitability of the company, although the financial indicators indicate a significant improvement in the company's position compared to previous periods.
With such measures, the company also hopes to gain an advantage over competitors, mainly electronics and home appliances manufacturers from Korea and China, who are forcing ever more price cuts in order to stay in the market.
Number of divisions Panasonic reduced from five to three. It is planned to close about 70 factories, and the number of company headquarters will be reduced to six: in Japan, North America, China and Northeast Asia, Africa and the Middle East, Latin America, Europe. The staff of the corporation will be reduced by almost five percent: today in Panasonic about 366,000 people work, this number will be reduced to 350,000.
More than a hundred billion yen will be spent on the restructuring process, with cuts starting as early as 2011.