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Japan's Hitachi to Cut 14,700 Jobs
Hitachi Ltd, Japan's largest electronics maker, said on Friday it would cut 14,700 jobs, or four percent of its global workforce, this year as it braces for a more than $1 billion loss brought on by the info-tech slump.
Hitachi said the workforce reductions, which include natural attrition, would come mainly in the semiconductor and display divisions that have borne the brunt of this year's brutal downturn in demand for PCs, cell phones and other electronic goods.
About 20 percent of the Hitachi group's employees work overseas.
The industrial giant said it expects 140 billion yen ($1.17 billion) in consolidated net loss for the business year, in part reflecting 80 billion in restructuring costs, and an operating profit of zero.
Analysts had widely expected the company to retreat from its initial forecasts in April of a 90 billion yen net profit and 280 billion yen in operating profit as the global downturn in chips and electronics dug in its heels and looked set to linger at least until the middle of next year.
Rival Japanese chipmaking conglomerates Toshiba Corp, NEC Corp and Fujitsu Ltd have also issued profit warnings and plans for thousands of job cuts over the past month.
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