Japan’s TDK to cut 8,000 jobs, forecasts loss

January 8, 2009 | By admin |

TOKYO – Japanese electronics component maker TDK Corp. said Thursday it would cut 8,000 workers and post its biggest net loss ever this fiscal year, due to falling orders and a stronger yen.

The company — known to consumers for its DVDs, audio tapes and other recording media — will cut the jobs as it closes four factories outside of Japan, said spokesman Kazutoshi Kogure. He declined to comment on which factories it would close.

TDK is the latest of Japan’s big-name manufacturers to cut jobs and scale back production as the global economic slump unfolds. Others, including Toyota and Sony, have also announced cuts in recent months.

Kogure said the job cuts will come mainly from regular employees, although contract workers and others in the TDK group of companies will also be included.

TDK had a total of 65,500 workers as of the end September, the last time it released an official figure.

The company also said it now forecasts a net loss for the current fiscal year that runs through March, its first net loss in seven years. TDK expects a loss of 28 billion yen ($304 million), versus its previous forecast for a 25 billion yen profit.

It also cut its sales forecast to 673 billion ($7.32 billion) yen from 795 billion yen.

Kogure said the job cuts and factory closures would boost TDK’s operating profit by 62.9 billion yen from next fiscal year, but the company could still finish in the red if business conditions don’t improve. source