Hitachi said the job cuts would be made around the world
Hitachi is to cut up to 7,000 jobs, as it warned it expects to make an annual loss of 700bn yen ($7.8bn; £5.5bn) because of a big fall in global sales.
Hitachi said the job cuts would be made globally across its car equipment and electronics divisions.
The Japanese electronics and engineering group had previously predicted it would make a net profit of 15bn yen in the year to 31 March 2009.
Hitachi is the latest Japanese firm to be hit by the global economic slowdown.
Japanese exporters have been hurt by the strong value of the yen, which recently soared to a 13-year high against the dollar.
Hitachi said it was aiming to achieve 200bn yen of cost cutting.
"Revenue for the 2009 financial year is expected to fall greatly due to the quick slowdown of demand for automobiles, semiconductors and industrial machinery," it said.
The firm also said it would reduce the number of its subsidiaries to 700 from 910 by March 2010.