Pioneer to cut 10,000 jobs globally

Japanese electronics company Pioneer Corp will cut 10,000 jobs globally to cope with sinking sales of car audio equipment and flat-screen TVs. It will also withdraw from its money-losing plasma display business.

The massive job cuts, announced today, are the latest in a slew of layoffs by Japanese corporate giants, who are slashing their payrolls worldwide, reducing production and forecasting annual losses amid a global economic slump. Sony Corp is shedding 8,000 workers while Nissan Motor Co and NEC Corp are each cutting 20,000.

Hit by the collapse in demand for car audio equipment and plasma TVs, Pioneer said its net loss in the current fiscal year to March will swell to 130 billion yen ($1.4 billion) from its previous estimate of a 78 billion yen net loss. It will be the fifth straight annual loss for Pioneer.

The company reported a net loss of $290.52 million for the latest quarter covering October-December, nose-diving from a profit of $18.76 million the previous year. Operating revenue declined 37.8 per cent to $1.46 billion.

"Since the US financial crisis and ensuing global downturn, our sales of car electronics products and flat-screen TVs plunged worldwide. We were severely hit by battered consumer sentiment," said Pioneer spokeswoman Michiko Kadoi.