Panasonic Corp. plans to cut up to 50 percent of the workforce in its semiconductor business — 7,000 employees — by March 2015 and sell off some of its factories, sources said Thursday.
Most of the job losses will be overseas, while employees in Japan will be transferred to other businesses, the sources said.
Panasonic has chip-making plants in China, Indonesia, Malaysia and Singapore. It is already in talks with Israel’s Tower Jazz, a manufacturer of integrated circuits, about the sale of overseas facilities.
Panasonic’s semiconductor business has been losing money amid fierce international competition with South Korean and Taiwanese makers, an economic slowdown and sluggish sales of flat-panel TVs.
The company will shift its resources to auto- and housing-related businesses that are expected to see growth down the road, the sources said.
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