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Japan's Pioneer to cut 10,000 jobs globally

(Agencies)
Updated: 2009-02-12 16:34

TOKYO -- Japanese electronics company Pioneer Corp. said Thursday it will cut 10,000 jobs globally to cope with sinking sales of car audio equipment and flat-screen TVs. It also said it will withdraw from its money-losing plasma display business.

The massive job cuts are the latest coming from Japan, where corporate giants like Sony Corp. and Nissan Motor Co. are slashing their payrolls, reducing production and forecasting annual losses.

Hit by the collapse in demand for car audio equipment and plasma TVs, Pioneer said its net loss in the current fiscal year to March will grow to 130 billion yen ($1.4 billion) from its previous estimate of a 78 billion yen net loss.

Pioneer said it will likely incur annual loss for the fifth consecutive year.

"Since the US financial crisis and ensuing global downturn, our sales of car electronics products and flat-screen TVs plunged worldwide. We were severely hit by battered consumer sentiment," said Pioneer spokeswoman Michiko Kadoi.

The Tokyo-based company said it will slash 6,000 full-time salaried workers at home and abroad, accounting for 16 percent of the company's global work force of 36,900. It will also cut 4,000 contract workers at its Japanese and foreign plants.

The company did not give a regional breakdown.