Matsushita Electric Industrial Co. said Friday it will downsize its struggling overseas mobile phone operations and trim as many as 1,400 jobs.
The maker of the Panasonic brand said it will trim up to 1,400 local employees, or nearly half of its overseas workforce, because it has decided to close all or part of four manufacturing and development facilities, located in Britain, the Czech Republic, the Philippines and the United States.
The move was described as a gradual withdrawal from its so-called 2.5-generation handsets overseas, which have been hit by steep price falls because rivals are introducing third-generation handsets.
Matsushita sells 3G models in Japan, but plans to strike back in overseas markets with the new generation models. The company will therefore switch to 3G model production at its Chinese manufacturing base in Beijing.
Unlike its other electronics products, like plasma TVs, the company hasn't been able to establish its brand in the global cell phone market, which has been dominated by firms that include Nokia, Samsung and Motorola.
In fiscal 2004, Matsushita had a 2.3 percent share in the global handset market, according to company officials.
Sanyo sells stake
Ailing Sanyo Electric Co. formally announced Friday that it will sell 33.3 percent of its 52.0 percent stake in Sanyo Electric Credit Co. to Goldman Sachs Group Inc. for roughly 23.1 billion yen.
Goldman is also poised to buy new shares to be issued by Sanyo Electric Credit and thus become its top shareholder with a roughly 42 percent stake.