first_imgOnly one day after hearing the news that Nokia is cutting 4,000 jobs and outsourcing another 3,000, we have news of another big tech company gearing up to restructure its business model and layoff employees, although this time, it’s not 4,000, it’s a much larger number.Panasonic, the biggest Japanese manufacturer of consumer electronics, and the world’s largest maker of plasma TVs, announced on Thursday that it will be cutting 17,000 jobs over the next two years. The company is gearing up for a major reorganization that will help it compete better with competitors in South Korea and China.Panasonic had already cut its number of employees from 385,000 to 367,000 in March 2010, but it’s now losing another 4.6 percent of employees. Panasonic’s chief executive, Fumio Ohtsubo, said in a statement that the reorganization will cost about $2 billion. But, he said the restructuring is expected to contribute about $735.6 million to Panasonic’s operating profit. He anticipates the profits to come mostly from increased sales of solar cells, LED lighting, lithium-ion batteries, and air-conditioning products.As we saw with Nokia’s partnership with Microsoft, whenever two companies join, there are surely layoffs to come. In the case of Panasonic, it acquired two companies this year, Panasonic Electric Works, and Sanyo Electric. These acquisitions most definitely have something to do with with the job cuts, as the company plans to condense any redundancies.Though it’s the world’s top maker of plasma TV displays, the more popular LCD display TV market is lead by Samsung Electronics and LG Electronics, both based in South Korea, and Japan’s Sony.Based in Osaka, Japan, the company is already dealing with a failing demand domestically due to the devastating earthquake and tsunami that hit in March. Panasonic announced its earnings Thursday with a net loss of $498 million in the three months through March, but the company declined to share the fiscal year earnings due to the effects of the earthquake.Read more at Panasonic, via New York Timeslast_img read more