Panasonic president Kazuhiro Tsuga has conceded that a lot of the company’s units are “undermining company-wide profitability” and announced shake ups.
Tsuga was appointed president only recently and his task will definitely not be an easy one. He has promised a restructuring outline plan by fall and a roadmap by February. He noted that the company may need to increase the amount of funds for restructuring to $516 million.
The company currently has some 330,000 workers, and although Tsuga said it’s a lot, he did not say how many will get the boot. The start of the restructuring is expected in October, when the company will sack or relocate most of the 7,000 workers in its headquarters, in order to bring the number of employees to several hundred.
Panasonic hasn’t had the best times as of late either, and lower than expected sales of TVs didn’t help. In the fiscal year ending with March 2012, Panasonic recorded a loss of almost $10 billion.