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Saturday, May 18, 2013
Panasonic May Fully Absorb Sanyo Electric

The future of Sanyo Electric as a brand and a company is uncertain as its parent company Panasonic is undergoing a reorganization plan, which includes global jobs cuts.

The Nikkei reported on Friday that Panasonic would cut 90 percent of Sanyo's global workforce of about 2,500 in around three years. About 1,000 workers at Sanyo's headquarters will be reduced to around 100 this fiscal year, leaving just a small crew for handling legal matters and managing intellectual property.

Sanyo had been a leader in lithium ion batteries and solar panels. Panasonic bought the company in 2010 in order to expand in new market segments but it faced hard competition from South Korean competitors, while the strong yen was also not allowing Panasonic to be competitive.

Since then, Panasonic has sold off several of Sanyo's operations, including the Sanyo digital and digital movie camera business.

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