Hitachi warns of bigger loss, 5,000 more layoffs
- 01 March, 2002 08:26
Hurt by a sluggish economy and a stagnant market for electronic products and components, Hitachi is doubling its previous loss estimate for its current fiscal year and increasing by 5,000 the number of job cuts planned.
Hitachi expects a net loss of ¥480 billion (US$3.6 billion) on net sales of ¥7.8 trillion for its 2001 fiscal year, ending March 31, the company said Thursday. Hitachi previously forecast a ¥230 billion net loss. The company had net income of ¥104.4 billion on sales of ¥8.4 trillion during its 2000 fiscal year.
Hitachi is accelerating implementation of emergency measures initiated last year. The company announced plans in October to cut 15,900 employees, 11,100 in Japan and 4,800 in other countries. Hitachi now says it will lay off a total of 20,930 staff members by June, with 15,100 in Japan and 5,830 elsewhere.
As part of its internal restructuring, Hitachi said it is exiting some businesses, implementing a variety of salary cuts and internal cost-control measures and spinning off selected units. Its display group will become a separate company in October focusing on flat-panel displays. Hitachi plans to post a ¥134 billion restructuring charge and a ¥146 billion charge for termination benefits.