Pioneer Announces Layoffs - TV Division Closure
As the faltering economy continues to cause declined sales and revenues for businesses of all sizes, Pioneer, an electronics company, has announced plans to lay off 10,000 employees and close their television manufacturing division in response to the softened demand for their products.
The layoffs are expected to impact 6,000 permanent positions and 4,000 temporary positions across their global workforce.
The company manufactures car and home audio products, including car stereos, DVD players, home audio equipment and other electronic goods.
Pioneer was founded in Tokyo, Japan in 1938 and has a US base in Long Beach, California. Pioneer has manufactured televisions for over 25 years and began manufacturing plasma screen TVs in 1991.
In addition laying off employees and getting out of the TV manufacturing division, they also announced plans to cut executive pay as part of an overall cost cutting plan.
Pioneer reported greatly reduced sales figures from the same period in 2008 and said they are going to focus on their car electronics division.
Pioneer President Susumu Kotani told AFP, "Even though the auto market is still subdued, we expect the market will pick up by March 2011, after which there will be a new business opportunity in the areas of environmentally friendly and fuel-efficient cars. We hope to take up the new challenge using our position in the market and our technological advantages."
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