Online information source for semiconductor professionals

Japan's Sanyo Electric Co. Ltd. has decided to cut 1,200 jobs as it sees huge losses in its chip business, according to Reuters. Executive Vice President Koichi Maeda told reporters at a news briefing in Japan that it will axe 600 of its chip workforce (approximately 6% of total) and 600 contract workers at chip operations both in Japan and overseas. Sanyo has blamed declining sales, increased costs in operations and instability in the yen for the need to cut jobs.

According to the Reuters report, the company is under pressure from Panasonic, which is in talks to acquire Sanyo, to minimize losses prior to the acquisition. Sanyo is said to expect an operating profit of ¥30 billion, down 40 percent from its reported outlook of two months ago.