As part of Panasonic‘s continuing business reorganization and downsizing, Japan’s electronics giant will soon be announcing their decision to pull out of the plasma television panel business. They were expected to do so by industry insiders, but the target date of March 2014 for the pullout is sooner than expected.
Because Panasonic has been struggling in this line of business for some time now, analysts were predicting an eventual pullout. Sources say that the hundreds of employees in this division will be transferred to the other departments of the company. The imminent closure of their only plasma panel factory in Japan will incur them a loss of 40 billion yen (approx. $413 million). It is also their last remaining factory building that was still in operation. In a statement released by the company, they said they are still looking into other options for their plasma display panel operations but that none have been reached yet as of now.
This is the second major development in Panasonic in the past few months, as the technology company has been finalizing their pullout from the Japanese smartphone market. They announced in August that they were ending their partnership with local mobile carrier NTT Docomo by winter this year, as they have been doing huge marketing pushes for Sony and Samsung smartphones, causing a sharp dip in Panasonic’s smartphone sales between April-June. The consumer electronics manufacturer will still be distributing some of their specialized models for corporate users in selected countries, but they are already finalizing plans to stop distributing smartphones in the Japanese market.
[ via Reuters ]