Japanese consumer giant Matsushita Electric Industrial Co is looking to axe 3,000 jobs over the next two years on the back of reduced sales targets for fiscal year 2000. The jobs will go from six of its companies including Matsushita Communication Industrial Co and Matsushita Electronics Corp. According to Japanese press reports, the cuts are part of a longer term plan to cut the company’s total workforce from 83,000 to 70,000. Matsushita expects to achieve the current reductions through natural attrition and a hiring freeze. The cuts have come about because the group lowered its sales target in fiscal 2000 to 8.5 trillion yen ($76.4m) from 9 trillion yen ($80.9m). Matsushita had previously predicted a group pre-tax profit margin of over 5% for fiscal 2000. However, the group’s companies have been lowering their forecasts in line with the current tremors on the Asian economic scene. The group pre-tax profit margin for fiscal 1998 is expected to reach just 2.3%.
