Page last updated at 08:28 GMT, Thursday, 12 February 2009

Pioneer announces 10,000 job cuts

Pioneer television
Pioneer will stop making flat-screen TVs by March 2010

Japanese electronics maker Pioneer is to cut a further 10,000 jobs as it warned it expected to report an annual loss of 130bn yen ($1.4bn; 1bn).

The struggling company also announced that it is to close its loss-making flat-screen television business.

Hit by the sharp fall in global consumer spending, Pioneer had already shed 5,900 jobs last year.

Pioneer described the decision to pull out of making flat TVs, a sector it once led, as "extremely painful".

'Severely hit'

The job cuts will involve 6,000 full-time workers, both in Japan and abroad. The additional 4,000 reductions will hit contract staff, also both in its home nation and worldwide.

Pioneer currently has a global workforce of 36,900.

"Since the US financial crisis and ensuing global downturn, our sales of car electronics products and flat-screen TVs plunged worldwide," said Pioneer spokeswoman Michiko Kadoi.

"We were severely hit by battered consumer sentiment."

Industry-wide woes

Despite being one of the first firms to sell flat-screen televisions, Pioneer never managed to build up a significant market share.

Instead, industry figures show that it only held a 6% share of the worldwide market in the first nine months of last year.

This compared with 37% at Japanese rival Panasonic, and 23% at South Korea's Samsung.

Most of Japan's main electronics firms are now suffering as consumers around the world cut back on their spending.

Sony warned last month that it expects to make its first annual loss in 14 years, and is continuing work to trim its global workforce by 8,000 positions.

Toshiba has also said it is due to make a loss for 2008.



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