The Osaka, Japan-based company, which makes Panasonic-branded goods, said it would focus instead on handsets for next-generation networks, and unifying platforms and core technologies for the Japanese and overseas markets, according to a company statement.
Matsushita said it would spend about $83m on the restructuring, for an expected $58m upside.
A company US development center and factory in the Philippines will be closed. Matsushita also said it plans to shut its GSM mobile handset production line in the Czech Republic.
Sales and service activities for the current GSM products will continue.
