Panasonic Cuts 15,000 Jobs; Global Layoffs

Sales Forecast Low for Plasma Flat-Screen TVs, Digital Cameras and Electronics

By ELEANOR HONG, SCOTT MAYEROWITZ and ALICE GOMSTYN
Feb. 4, 2009

A cheap night at home in front of the television may have new appeal for cost-conscious consumers these days, but that hasn't made television manufacturers and their employees immune to the recession.

Panasonic Corp., the electronics giant known for flat-screen TVs as well as digital cameras, announced today that it wouldslash 15,000 jobs and close 27 plantsworldwide. In December, rival consumer electronics maker Sony announced 16,000 job cuts.

Panasonic, which saw its third-quarter sales drop by 20 percent, announced its first annual loss in six years.

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"The current financial crisis originated in the United States has spread across the world and the company's outlook of the business environment has been extremely uncertain," the company said in its financial forecast.

The Osaka-based corporation is one of several Japanese companies cutting back on global production and staff. Japanese corporations are dealing with low sales and implications of a weak global economy set off by the U.S. financial crisis. The company's cost-cutting measures will affect Japan's workforce with plans to close plants by the end of March next year.

Macy's and Financial Giant Morgan Stanley

The crumbling economy has taken its toll on one of the largest department store chains. Macy's announced that it will cut 7,000 jobs, about 4 percent of its work force.

The company's cost-cutting measures include restructuring its retail divisions and reducing planned expenses. Macy's Inc. operates more than 840 department stores -- under Macy's and Bloomingdale's -- across the nation, with corporate offices located in New York and Cincinnati.