Japan's Pioneer plans to cut 5 percent of workforce: media
TOKYO (Reuters) - Pioneer Corp (6773.T) plans to slash nearly 5 percent of its workforce, or about 2,000 jobs, Japan's Nikkei business daily reported on Tuesday, as the electronics maker restructures its struggling plasma TV operations.
As part of the restructuring, Pioneer may mention job reductions when it announces earnings results at 2 a.m. EDT, company spokesman Kohei Iwamoto said. He declined to elaborate but denied 2,000 employees would lose their jobs.
Pioneer, the world's fifth-biggest plasma TV maker, has been struggling to compete with larger rivals such as plasma industry leader Matsushita Electric Industrial Co (6752.T) and LG Electronics (066570.KS), which can leverage economies of scale.
The company in March forecast a fourth straight annual loss in the year that ended on March 31 because of the costs of scrapping plasma display production as it rejigs strategy in the cut-throat flat TV market.
It had previously forecast a profit.
The Nikkei said the jobs would be cut in the current business year to next March, likely at three domestic plants mainly. The cuts would be carried out through early retirement and other measures, the paper said.
Pioneer will gradually reduce its workforce from this summer, transferring some 200 plasma-related researchers and engineers to Matsushita, with which Pioneer is in alliance talks, the paper said.
It added that the company was also considering cutting jobs in its home audio equipment division.
Pioneer slashed 780 domestic jobs in the year ended March 2006, but its plasma TV business had not shown much of a recovery. The company has decided to pull out of plasma production to focus on more promising businesses such as car electronics and audio equipment.
Pioneer President Tamihiko Sudo has said he aimed to turn the company's home electronics business, which includes plasma TVs, profitable by the year ending March 2010.
Shares in Pioneer got a boost from the latest news, rising 5.9 percent to 1,078 yen as of 9:12 p.m. EDT. The benchmark Nikkei average .N225 was up 0.4 percent.
(Reporting by Sachi Izumi; Editing by Brent Kininmont)
