Panasonic to sharply scale down its money-losing TV business and cut more than 1,000 jobs

Panasonic plans to cease production of plasma panels at its No. 3 plant in Amagasaki, Hyogo Prefecture, by March next year due to poor TV sales. Panasonic was also considering selling its LCD display panel plant in Mobara, Chiba Prefecture, possibly to one of its Japanese rivals, according to local media. The plan will come with more than 1,000 job cuts through an early retirement program in an aggressive effort to revamp its TV business, which has been losing money for three years.

Panasonic has decided to downgrade its TV sales target for this fiscal year to March from 25 million units to 20 million. A high yen, intense global competition—particularly from South Korean firms—and falling retail prices of televisions have left Panasonic unable to earn profits by making televisions. Panasonic’s No. 3 plant in Amagasaki, completed in December 2009, is among the biggest plasma panel factories in the world