Local Sanyo plant included in list of possible cutbacks

Japan’s Sanyo Electric Co. plans to cut up to 1,000 jobs and is choosing which among its semiconductor plants in China, Vietnam and the Philippines to close to revamp its struggling businesses before being bought by Panasonic Corp., a press report said.

Sanyo Electric is considering shedding about 500 of its 20,000 regular employees in Japan, mainly in the semiconductor division, by the end of March, the Nikkei business daily reported.

Kyodo News said the company plans to reduce its overseas semiconductor plants from the current seven to two.

The total number of job cuts, including temporary workers, is expected to reach about 1,000, the daily said, without naming its sources.

Several hundred of the 2,000 regular jobs at wholly owned unit Sanyo Semiconductor Co. are expected to be axed under an early retirement program, the Jiji news agency said. The subsidiary has some 10,000 workers worldwide.

“As we have announced with Panasonic, we must pursue structural reform,” a company spokeswoman said. “But at this point, no firm decision has been made.”

Panasonic said last month it would acquire Sanyo Electric for up to $9 billion, forming an industry heavyweight amid the global downturn.

The deal, which is expected to be completed by the end of March, was the first major realignment of Japan’s electronics industry since the start of the economic crisis, which has caused consumer demand to slump. –AFP