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We have reported on job cuts and possible losses by Panasonic over the past week.  The other shoe dropped as Panasonic released their official financial statement and announced a staggering cut of 15,000 jobs. 

The cuts are designed to make up for weak sales of digital cameras, car navigation systems, and semiconductor chips.  These cuts are also due to compensate for a strong Japanese Yen.  The strong Yen means costs are higher in Japan as compared to Korea, home of electronics giants LG and Samsung.  The weaker economy there allows those companies to produce and sell goods at a lower cost, forcing Panasonic to take a lower profit per item to keep their prices competitive.

The 15,000 jobs will come from closing 27 plants across the globe.  Over half of the job cuts are expected to be in Japan, with the second largest coming from Malaysia and the Philippines.  All the details have yet to be worked out, but after an 88 percent drop in annual operating profit, Panasonic must do something to stay competitive.  After fees associated with the restructuring, Panasonic is expected to post a $4.2 billion annual net loss, the first in seven years.  The good news, the expected savings could be as high as $1 billion next year, so maybe this will be the last bad news for a while from Panasonic.

From [Business Week]