(Reuters) - Sanyo Electric Co may cease to exist under a reorganization by Panasonic Corp that includes global jobs cuts, Nikkei reported on Friday.
Panasonic will cut 90 percent of Sanyo’s global workforce of about 2,500 in around three years, the daily reported.
About 1,000 workers at Sanyo’s headquarters will be reduced to around 100 this fiscal year, leaving just a skeleton crew for handling legal matters, managing intellectual property and other tasks. Panasonic may decide to absorb the unit entirely, the Nikkei said.
Panasonic bought rival Sanyo, a leading maker of lithium ion batteries and solar panels in 2010. The acquisition however, failed to bring in the growth that Panasonic had expected, as the battery business was hurt due to emergence of South Korean competitors and a strengthening yen.
This was followed by the slump in digital appliances, and Panasonic sold off several of Sanyo’s operations, the Nikkei said.
In December, Panasonic sold its Sanyo digital and digital movie camera business to Japanese private equity fund Advantage Partners for an undisclosed sum.
Reporting by Neha Alawadhi in Bangalore; Editing by Joyjeet Das
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